Crunchafi

Lease Accounting Verification vs Lease Accounting

Lease Accounting Verification is an audit tool that provides the same functionality as the full Lease Accounting product but only for a sample of leases, allowing auditors to generate amortization schedules and verify key lease accounting elements such as lease assets, liabilities, expenses, and modifications, with the option to upgrade to the full product if needed.

What is Lease Accounting Verification?

Lease Accounting Verification is an audit tool used to test a sample size of leases for clients who have selected a different lease accounting solution.

What will you get with Lease Accounting Verification?

Lease Accounting Verification provides all the same functionality as the full Lease Accounting product; however, it only generates an amortization schedule for the sample size of leases.

How will you use Lease Accounting Verification to assist in your audit?

To use Lease Accounting Verification for audit purposes:

  • Enter a sample size of your client’s lease accounting data.
  • Export the Amortization Schedule to audit the following:
    • Lease asset at the beginning and end of the year
    • Short-term and long-term lease liability at the beginning and end of the year
    • Amortization Expense & Interest Expense for Finance Leases, Operating Lease Expense for Operating Leases
    • Variable expenses
    • Modification or re-measurement calculations for revised leases

Automated Amortization Schedules help quickly assess whether incorrect client inputs require an adjusting entry. Common inputs that may need analysis include:

  • Client entered a generic discount rate
  • Client didn't include an option (e.g., renewal, termination, purchase)
  • For lease assets to be purchased at the end of the lease, client used the Lease Asset life equal to the term
  • Client forgot to combine lease and non-lease components for a given lease
  • Client forgot to include a payment/receipt as required by the applicable standard

Can we upgrade a client from Lease Accounting Verification to the full Lease Accounting product?

Yes. You can upgrade by editing the client account and changing the Product to Lease Accounting instead of Lease Accounting Verification. Pricing changes may apply.