This report gives detailed information about the income statement and balance sheet activity for each lease, as well as its future minimum rent commitments.
See IS/BS Report Options for a description of the choices for setting up a report.
Balance Sheet accounts
For each balance sheet account (right-of-use asset, accumulated depreciation, current liability, accrued interest, and long term liability), the report provides the balance at the beginning of the period, amount added (shown only for a lease newly added or revised), current period activity, amount removed (shown only for a lease that terminates or is revised downward), and ending balance. If an individual lease is not added or terminated, that line is not shown; all lines are shown in the totals, whether or not there are any added or terminated leases in the report.
Income Statement accounts
There are columns for gross rent, executory costs, nonlease components, net finance rent (after deducting other payment types, if any), interest, and liability payments. For each, EZLease displays accrual activity for the period, actual payments made during the period, and the balance at period end. Underneath, depreciation and interest expense for the period are displayed.
FAS 13: Operating activity is shown in two columns. On the left is the cash rent activity; on the right is level rent activity for leases with scheduled rent increases and leveling enabled. If a lease has a single rent step, or does not have leveling enabled, the right column is not displayed.
ASC 842: Since operating leases are capitalized, the full set of balance sheet accounts is displayed. Operating leases record all expense in a single "lease cost', rather than separate depeciation and interest.
The beginning and ending accrual balance are non-zero if the start or end, respectively, of the report period are in the middle of a payment period. A positive number indicates a prepaid balance, which exists for leases paid in advance. A negative number indicates an accrual for rent due, which exists for leasese paid in arrears. Cash rent accrued prorates the current rent payment(s) over the exact dates of the report period. Rent paid reflects the entire amount of rent paid on the day it is due, with no prorating.
If your lease has rent leveling, the beginning and ending deferred balances are your deferred rent liability (a negative number, a credit) or asset (a positive number, a debit). Most leveled leases have higher rents at the end of the lease, and therefore have a deferred rent liability. A deferred rent asset can result from concessionary renewal rents, which under FAS-13 must be considered part of the initial lease term.
The deferred rent balance is the difference between the life to date cash rent and life to date level rent. You may choose whether cash rent should be based on the actual payments or the cash rent accrual, by unselecting or selecting, respectively, the checkbox marked Smooth rent leveling in System Options.
The level rent accrued is calculated on a daily basis over the life of the lease (although if you select monthly depreciation calculation in System Options, the level rent is also adjusted to be consistent between 30 & 31-day months). The level rent change is the difference between the level rent accrued and the cash rent.
At the far right is the operating rent expense. If a lease has rent leveling, this is the level rent accrued. Otherwise, this is the cash rent accrued. It allows you to see in one place for all operating leases what the current expense is.
If you choose text output, you may export or print the results.
Future minimum rents
See the Future Minimum Rents report for a description of this section of the report. If you choose spreadsheet output, the future minimum rents are shown in a second tab.
If you run a report for more than one period, each lease displays an income statement total combining all periods.
After all leases, a totals report is generated, for each period and for all periods combined. (This is true even if you choose a group of leases that has only one lease.) The totals section also displays a count of the number of each type of lease at the beginning of each period, added, terminated, and active at period end.
The balance sheet accounts (including deferred operating rent asset/liability) are shown as of the end of the last report period. The future minimum lease payments are shown as of the end of the report. Both finance and operating future rents are shown; the finance rents only are broken down between executory costs, interest, and liability. (For FAS 13/IAS 17 reporting, the executory costs column does not include any executory costs entered for operating leases.)
Any leases which start later than the end date of the report are included in the future minimum lease payments only if their booking date is before the report end date and you have selected “Include future leases” in System Options.
If you create spreadsheet output for this report, all the same accounts are displayed with one row of information per lease per report period (that the lease is active). To facilitate sorting and selecting the output, the lessor name, asset class, financial group, and all user-defined fields are included. In addition, if you have entered account numbers for the lease, those are output at the end of each line (if you have chosen to output account numbers in System Options/Account Numbering). The future minimum rents information is shown in a second tab (worksheet) of the spreadsheet.