Add Lease - FASB

The guide explains how to add a lease for lessee reporting under FASB or IFRS by selecting Add Lease, choosing Manual Entry or AI Lease Abstraction, and completing a five-step workflow including entering lease description and term, lease payments and classification, GL accounts, optional variable expenses, and attaching lease documents, with the prerequisite that a Reporting Entity with the correct Initial Application Date is set up beforehand.

Learn how to Add a Lease when reporting as a Lessee under FASB or IFRS

To add a lease, click Add Lease. Select Manual Entry or Create from file to use AI Lease Abstraction. Follow the workflow to add all required fields.

Note: A Reporting Entity with the correct Initial Application Date must be added before adding leases.

Steps to Add a Lease

Step 1: Description & Term

Minimum requirements include Reporting Entity, Lease Name, Asset Type, and Lease Term.

Step 2: Lease Payments & Classification

Enter the Discount Rate, Lease Payments, and Classification.
If entering a transition lease (where the start date of the lease was prior to the application date of the new standard), enter Existing Balances.

Step 3: GL Accounts

Enter GL Accounts and Cost Center allocations.

Step 4: Variable Expense & Non-Lease Payments

This optional field is for entering variable type expenses or non-lease payments. For more information about what may qualify, refer to the relevant documentation.

Step 5: Attach Documents

To upload the lease file, click Upload, navigate to the file, and click Open. Optionally, add a name for the lease file.