Add Lease - FASB/IFRS Lessor

This article covers how to Add a Lease when reporting as a Lessor under FASB or IFRS

When adding leases to LeaseCrunch software, it's important to determine if you'll use the original Initial Application Date or use current year Initial Application Date. 

Select one option below before proceeding to add leases:

Option 1: Using the Original Initial Application Date

Purpose: This option is for reporting on leases as of the original Initial Application Date.

Example: Organization adopted ASC 842 as of 1/1/22 and recorded Lessor leases outside of LeaseCrunch software. 

How to:

1. Use the existing Reporting Entity and the original Initial Application Date
2. Update GL Accounts to match existing Lessor related reporting
3. Enter leases through the Add Leases workflow
   1. Select the Accounting Standard, if available
   2. Select Lessor
   3. Enter the lease data beginning with start dates on or after the Initial Application Date.
   4. Add Deferred Rent as an Existing Balance on step 2 of the workflow. Use the balances that existed as of the original Initial Application Date.
4. Add all Lessor leases that started after the Initial Application Date
5. Reporting on Lessor leases is found at My Leases by selecting the Lessor toggle
6. If needed, make a current year adjustment for any differences between LeaseCrunch reporting and prior reporting

Option 2: Using the Current Year Initial Application Date

Purpose: This option is for reporting on leases under ASC 842 for the current fiscal year.

Example: Organization adopted ASC 842 as of 1/1/22 and recorded Lessor leases outside of LeaseCrunch software. Organization will utilize LeaseCrunch software as of the current fiscal year of 1/1/24 moving forward. 

How to:

1. Navigate to Administration - Reporting Entity - Click Add
   1. Add Entity Name and select Initial Application Date as the beginning of the current fiscal year. (Example: Initial Application Date of 1/1/24) Update Currency and click Add.
   2. Update Reporting Entity Locations as needed
2. Navigate to Administration - GL Accounts Update GL Accounts to match current lessor related reporting
3. Enter leases through the Add Leases workflow
   1. Select the Accounting Standard, if available
   2. Select Lessor
   3. Enter the lease data beginning with start dates on or after the Initial Application Date.
   4. Add Deferred Rent as an Existing Balance on step 2 of the the workflow. Use the balances that existed as of the beginning of the current fiscal year.
4. Add all Lessor leases that started after the Initial Application Date
5. Reporting on Lessor leases is found at My Leases by selecting the Lessor toggle