Lease Accounting
- Complies with UK and international accounting standards for lease accounting.
- Can be used stand-alone, or leases may be cross-referenced to assets held within the lease and recorded in the asset register.
- Enables finance and operating lease details to be maintained to satisfy the full accounting and disclosure requirements for leased assets.
- Apportions rentals payable between the finance charge and the repayment of capital.
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Provides three methods of allocating finance charges to payment periods.
- Actuarial method
- Rules of 78 (i.e. sum of digits) method
- Straight line method
- Calculates the amount of outstanding obligations for finance leases, net of future finance charges, analysed by accounting year.
- Calculates aggregate finance charges for the period in respect of finance leases.
- Identifies commitments at the balance sheet date in respect of finance leases entered into, but where inception occurs after the year end.
- Shows operating lease rentals charged in the period.
- Analyses the payments which the lessee is committed to make under operating leases according to the year in which the lease expires.
- The Fixed Asset Accounting module provides for the full depreciation accounting requirements of leased assets.
- Lease costs can be broken down into different asset categories, based on information held on the asset register.
- Adjustments are made to disposal proceeds for VAT, on early settlement of HP contracts, if used in conjunction with the asset register.