NetLessor Lease Accounting Lifecycle
THE LEASE ACCOUNTING LIFECYCLE OVERVIEW & KEY PROCESSES
NetLessor has been purpose-built to support each phase within the lease accounting lifecycle and to help support compliance with the new lease accounting standards.
Each step in the lease accounting lifecycle shown above is covered separately in the subsequent user guide. A brief description of each steps is included below:
• Transition To New Standard -Represents the activities and corresponding journal entries required on the date of transition to the new accounting standard (whether IFRS 16 or ASC 842).
• Identify & Configure Leases - Represents the activities required to set up a new lease in the NetLessor module and enter the required calculation inputs. The lease amortization table is created in this phase of the lifecycle (no journal entries are recorded yet for the lease).
• Commence Leases - Represents the activities required at lease commencement to initiate the lease.
• Process Monthly Transactions - Represents the activities required monthly to recognize the amortization of the right of use asset as well as accounting for the corresponding lease payments.
• Modify or Renew Leases - Represents the activities required to modify a lease, whether the change in scope or terms of the release were part of the original agreement or subsequent agreement.
• Terminate Leases - Represents the activities involved to close or terminate a lease record, write off all balances, and lock the lease for further activity.
• Disclose Lease Details - Represents the activities and reports available to support lease disclosure requirements under the new accounting standards.
• Manage & Analyze Leases - Represents the additional functionality within NetLessor to support the ongoing management and analysis of the lease population, including renewal dates, capturing key data, & other lease management activities.