Assemble Footnote Lease For Free

Footnote disclosures are your company's plot; they tell the story of your company's events in a way that creates additional insights to readers.

The new lease standard increases the scope and complexity of the financial statement footnote disclosure with additional requirements for both quantitative and qualitative disclosures. While providing useful information, using a spreadsheet to create these disclosures becomes far more difficult than before.

At commencement of the lease term, finance leases should be recorded as an asset and a liability at the lower of the fair value of the asset and the present value of the minimum lease payments (discounted at the interest rate implicit in the lease, if practicable, or else at the entity's incremental borrowing rate) [ ...

If any one of these five criteria are met, at its inception, the lease should be considered a finance lease: Transfer of ownership. The lease transfers ownership of the property to Cornell by the end of the lease term. ... Lease purchase option. ... Lease term. ... Present value. ... Alternative use.

The lessor reports the individual lease payments as income on the income and cash flow statements. The lessee reports the individual lease payments as operating expenses on the income and cash flow statements.

Other Lease-Related Information Cash flows - for both finance and operating leases, a lessee must disclose the cash paid to reduce lease liability (for operating leases, this is the total cash paid, and for finance leases, this includes the interest paid, disclosed broken out from principal payments)

A general description of those leases. The basis and terms and conditions on which variable lease payments are determined. The existence and terms and conditions of options to extend or terminate the lease. The existence and terms and conditions of residual value guarantees provided by the lessee.