IFRS 16 only
IFRS users need not recognize as finance leases contracts for low-value assets. According to the Basis for Conclusions of IFRS 16, "the IASB had in mind leases of underlying assets with a value, when new, in the order of magnitude of US$5,000 or less." [IFRS 16, BC100] Specify your threshold in System Options. If the combined land and building fair values are less than the threshold, the low-value asset box is automatically checked, but you may change it if appropriate. Note that the criterion is intended to apply to the value of an asset when new. If the lease has an original economic life greater than the current economic life, EZLease prompts you to confirm that the asset should be considered of low value.
Low-value asset leases are treated like IAS 17 operating leases, with rent recognized on a straight-line basis.