Short Term Lease Census
  • 20 Jul 2022
  • 1 Minute to read
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Short Term Lease Census

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Article Summary

Purpose 

This search provides a detailed listing of leases marked as short-term or low value, which can be a required footnote disclosure item. Leases are marked as short-term or low value on the lease record during lease creation within the primary information field.

https://blog.netgain.tech/short-term-lease-exemption

Quantitative Disclosure Guidance

Below is the lease quantitative disclosure guidance

ASC 842-20-50-8 A Lessee that accounts for short-term leases in accordance with paragraph 842-20-25-2 shall disclose that fact. If the short-term lease expense for the period does not reasonably reflect the lessee's short-term lease commitments, a lessee shall disclose that fact and the amount of its short-term lease commitments.

For reference, ASC 842-20-25-2 says the following, "As an accounting policy, a lessee may elect not to apply the recognition requirements in this Subtop to short-term leases. Instead, a lessee may recognize the lease payments in profit or loss on a straight-line basis over the lease term and variable lease payments in the period in which the obligation for those payments is incurred (consistent with paragraphs 842-20-55-1 through 55-2). The accounting policy election for short-term leases shall be made by class of underlying asset to which the right of use relates.

Also, note that the Glossary defines Short-Term Lease as the following, "A lease that, at commencement date, has a lease term of 12 months or less and does not include an option to purchase the underlying asset that the lessee is reasonably certain to exercise."

How To

Navigation:

NetLease > Reports > Disclosure Reports > Short Term Census

Filtering:

The report search can be narrowed down by adjusting the filters for customized segments assigned to the company. Once desired filters are set, click Generate Report and the file is exported to Excel.

Results

Upon running the schedule the user will see a list of short-term leases with supporting details. Payment amounts listed are for whatever frequency of payment is required for the short-term lease. In the example below, the monthly required payment for this short-term lease is $495.




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