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Can lease and non-lease payments be shown separately?

Under ASC 842, lease and non-lease payments can be shown separately if a policy election is made at implementation, with lease payments recorded under the "Lease Payments & Classification" tab and non-lease payments under the "Variable & Other Payments" tab, resulting in journal entries and amortization schedules that distinctly reflect each payment type.

  1. 1.Crunchafi Lease Accounting
  2. 2.Lease Accounting FAQs
  3. 3.Payments

Can lease and non-lease payments be shown separately?

This is a policy election made at the time of ASC 842 implementation

Lease and non-lease payments can be shown separately if the policy election is made at the time ASC 842 is implemented. If the election is made to not combine lease and non-lease payments, then the lease payments are entered under the Lease Payments & Classification tab and non-lease payments are entered under the Variable & Other Payments tab.

Journal Entry reports will show expenses appropriately with each as determined by the lease accounting standard.

The Amortization Schedule will show the expenses associated with each lease payment type as separate columns.

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