Asset-Level Lease Accounting
Asset-level lease accounting is the process of recording transactions by generating debits and credits for each asset on a lease contract. Variations in asset scenarios are common with equipment leases and complex real estate leases. If you perform asset-level lease accounting, you can treat each asset as its own lease and capture the variability that naturally occurs in your operations.
This White Paper includes:
- Differences between Contract and Asset-Level Lease Accounting
- Examples of Impacted Decisions, Judgments, and Events
- Asset-level Data Needed at the Start, Middle, and End of Term
- Financial, Tax, and Management Accounting Requirements
- Key Implementation Challenges with Data and Accurate Calculations
Examples Covered Include:
- Blade Servers with Different End-of-Term Decisions
- Lease Lines for Material Handling Equipment
- Super-Asset Aggregation of Data Center Technology
Also Check Out
Understand how the costs are categorized and valued, as well as the available practical expedient to not separate components.
Asset-level lease accounting means collecting a lot of data fields from each lease. Make sure you don’t miss any with this checklist.