June 2022 EZLease Update
Dashboard
Gain insights into your lease portfolio and stay on top of critical dates with the new EZLease Dashboard. Key features include:
- Notifications table that displays upcoming expirations, rent changes, and any custom notifications you’ve entered in EZLease.
- Active vs Expired and Lease Classification charts to provide a high-level view of your lease portfolio.
- Recently Created table that displays a list of all leases created in the last 30 days
To make room for the dashboard, the “Manage my leases” button and your username and email have been moved into the header.
Read more about the EZLease Dashboard
GASB 96 (SBITAs)
Government entities can now manage SBITAs (Subscription-Based Information Technology Arrangements) in EZLease in accordance with GASB 96. GASB 96 is a new workspace, which means you can have separate user-defined fields, account number groups, user permissions, etc. for SBITAs vs leases – giving you complete flexibility to separately configure SBITA and lease workspaces to meet your needs.
Read more about GASB 96 in EZLease
Accounting updates
In rare cases, reporting outputs may vary between previous and new versions of EZLease. See the table below for a complete list of scenarios in which reporting outputs may vary from the last version of EZLease (8.4) and the newest version (8.5):
|
Scenario and impact of update |
ASC 842 |
IFRS 16 |
GASB 87 |
Lessee |
Lessor |
ARO |
|
Scenario: If a lease is revised twice in a single report period, and the second revision includes a change to lease incentives, the journal entries report shows two entries for lease incentives, which puts the report out of balance.
Impact: The incentive is now shown once. |
x |
x |
x |
x |
x |
|
|
Scenario: If a finance or capitalized operating lease has executory costs or nonlease components equal to the gross rent (so there is no net rent), running a report for a period less than a full payment period results in an out of balance error, because the accrued rent for the period is not prorated (it’s shown as equal to a full payment).
Impact: Accrued rent is now properly calculated as a portion of a full payment. |
x |
x |
x |
x |
x |
|
|
Scenario: If a lease is fully impaired, and subsequently is revised with a reduction in liability, the journal entry report doesn't show the adjustment.
Impact: The journal entries report now properly shows the reduction in liability and a revision gain. |
x |
x |
x |
x |
|
|
|
Scenario: If an IFRS 16 or GASB 87 finance lease is revised to shorten the term after it has been partially impaired, the reduction in asset and calculation of gain or loss from the deemed partial termination is calculated incorrectly.
Impact: The asset reduction and gain are now calculated correctly. |
|
x |
x |
x |
|
|
|
Scenario: If a GASB 87 lessor lease is revised, the Beginning Receivable account does not show the activity, resulting in an out of balance error.
Impact: Addition or removal of receivable is shown for Beginning Receivable account. |
|
|
x |
|
x |
|
|
Scenario: If an ARO has both a revision and a payment during the same report period, the accretion is calculated incorrectly. Future reports (where the revision and payment happen before the start of the report) are calculated correctly.
Impact: Accretion is calculated correctly whether the revision is before or during the report. |
x |
x |
|
|
|
x |
|
Scenario: If an ARO end date is revised exactly 12 months less one day before the current end date, the liability is reclassified from long term to current before the revision takes effect and is not reclassified back to long term with the revision. An out of balance error is reported.
Impact: Liability is now properly reclassified back to long term. |
x |
x |
|
|
|
x |
|
Scenario: If an ARO has a reduction in value (for instance, because the end date is extended or inflation rate is reduced), and the reduction in liability is greater than the net asset in one layer, but another layer has more than enough net asset to absorb the reduction, sometimes an out of balance error is reported for both the asset and the accumulated amortization. If the revision date is the first day of a report period, the amount may be miscalculated without reporting an error.
Impact: The reduction in liability is now properly matched with a reduction in asset in the other layer. |
x |
x |
|
|
|
x |
|
Scenario: If an ARO is revised to shorten its life, and the new end date is the same as the revision booking date, the accumulated amortization was miscalculated and a balancing error was reported.
Impact: Amortization is now calculated correctly. |
x |
x |
|
|
|
x |
|
Scenario: If an ARO has multiple layers, the liability on one layer is greater than the net asset, and there are two or more other layers with remaining asset, the excess liability is matched against all the layers, rather than once.
Impact: Total reduction in asset for all layers now matches reduction in liability. |
x |
x |
|
|
|
x |
|
Scenario: If an ARO with a positive net asset has a negative layer added which is larger than the net asset, and this change is booked in one report period, while the next report period has a rate change or ARO revision that reduces the liability, the ARC asset ending balance was miscalculated, resulting in an out of balance error.
Impact: Ending asset balance is calculated correctly. |
x |
x |
|
|
|
x |
|
Scenario: In some cases (depending on what was displayed), the minimum rents report showed an incorrect amount for total short term rent. |
x |
x |
x |
x |
x |
|
|
Scenario: If a lease is fully or partially impaired, and is subsequently partially terminated, the amortization expense and accumulated amortization were incorrect for the rest of the life of the lease. Impact: Accumulated amortization and impairment are properly adjusted for partial termination, and amortization expense calculated on any remaining asset. |
x |
x |
x |
x |
|