Table of Contents

Administration | Users

User Roles

Below is the list of user roles and their associated permissions.

Administration | Reporting Entity

Reporting Entity

Reporting Entity is the financial reporting entity for which you produce financial statements. At your organization, a reporting entity might be known as a company, business unit, subsidiary, fund, institution, organization or office. 

In Administration/GL Accounts, each reporting entity has its own set of GL Accounts. 

There is no hierarchy for reporting entities in LeaseCrunch; instead, users select the reporting entities to combine for reporting at My Leases and each combination can be saved as a Custom View.

Initial Application Date:

Summary Guidance:  The Initial Application Date is the beginning of the earliest period presented in the financial statements in which the lease standard is first applied.  In order to select your Initial Application Date, you must first determine your Effective Date. 

• Entities subject to GASB 87 have an Effective Date for fiscal years beginning after June 15, 2021 with a requirement to restate prior periods unless it is not practical.

  • If your financial statements present 2 years and your fiscal year end is 6/30, your Initial Application Date is July 1, 2020.

  • If your financial statements present 2 years and your fiscal year end is 12/31, your Initial Application Date is January 1, 2021.

• Entities subject to GASB 96 and GASB 94 have an Effective Date for fiscal years beginning after June 15, 2022 with a requirement to restate prior periods unless it is not practical.  

  • If your financial statements present 2 years and your fiscal year end is 6/30, your Initial Application Date is July 1, 2021.

  • If your financial statements present 2 years and your fiscal year end is 12/31, your Initial Application Date is January 1, 2022.

• Download this file to Calculate your Initial Application Date: IAD Calculator.xlsx

Example of GASB 87:  Financial statements with 2 years presented.

Open

Technical Guidance:

Administration | Policies

Require Review + Approval for every new Lease created:

When you select the Require Review policy at Administration/Policies, the following is true for any subsequently entered lease or lease revision:

• Review Tab: When adding a lease, the Review tab only appears when Require Review policy is selected. The Review tab requires a user to submit a lease for review by another user.

  • Note: Users can optionally choose to send an email notification to reviewer(s) when a lease is ready for review.

• Incomplete Status: Before submitting a lease for review, the lease remains in Incomplete status even if all required data fields are entered.

• Review Status: After submitting a lease for Review, the lease status changes from Incomplete to Review.

• Reporting: Leases in either an Incomplete or Review status cannot be exported at My Leases.

• Reviewer: Any User can review and approve a lease in review except the last person to edit the lease. Approving a lease changes the status from Review to Complete and the lease can then be included in My Leases exports.

• Lease Edits: When a lease is edited, the lease status is returned to Review, requiring approval by any user who did not last edit the lease.

  • Note: A lease created before Require Review is selected will not require a review even for edits made after Require Review is selected.

Administration | GL Accounts

Fixed Asset:

Fixed Asset GL Accounts (applicable to Lessee only) are used if the Lease Asset Life is greater than the Lease Term (entered in the Add Lease tab). The final journal entry will transfer the remaining Lease Asset balance to a Fixed Asset GL Account. Exclude leases that transfer ownership, but include leases where the lessee can exercise a purchase option.

Technical Guidance (GASB 87: Paragraph 19): 19. A contract that (a) transfers ownership of the underlying asset to the lessee by the end of the contract and (b) does not contain termination options (see paragraph 12), but that may contain a fiscal funding or cancellation clause that is not reasonably certain of being exercised (see paragraph 13), should be reported as a financed purchase of the underlying asset by the lessee or sale of the asset by the lessor.

GL Accounts for Existing Balances under Previous Lease Accounting Guidance:

GL Accounts at Administration/GL Accounts under the heading "Existing Balances Under Previous Lease Accounting Guidance" are used to remove balances from your opening balance sheet upon initial application of GASB 87, 94, 96, such as:

1. Remove Prepaid Expense and add the balance to Lease Asset (see example below).

Click here for an example:

1. Go to Administration/GL Accounts, under the heading Existing Balances under Previous Lease Accounting Guidance add Prepaid Expense GL account (or modify default Prepaid Rent (Asset) GL Account)

2. Go to Add Lease screen to enter your lease or go to My Leases and edit the lease (if the lease was previously added)

3. In Add/Edit Lease, select the tab “Lease Payments,” and go to the section “Existing Balances under Previous Lease Accounting Guidance”

4. Select the Prepaid Expense GL Account from the dropdown and enter the existing balance as a positive value and save your lease:

Open

After completion of the steps above, upon initial application of GASB 87 or GASB 96, the opening journal entry for this lease will remove your existing balance under previous lease accounting guidance with an offset to the Lease Asset:
Dr. Lease Asset (GL#210)                                                         $50,000*
            Cr. Lease Liability (GL#220)                                                               $50,000
Dr. Lease Asset (GL#210)                                                         $3,000*
            Cr. Prepaid Asset (GL#500)                                                                  $3,000         

*In this example, the Lease Asset is calculated to be $50,000 under the new lease accounting guidance.  An additional $3,000 of Lease Asset is recognized in the journal entry to remove the prepaid expense balance under previous lease accounting guidance.

2. Remove existing capital lease balances with any difference between capital asset balance and capital liability balance debited/credited to restatement of beginning net position under Implementation Guide 2019-3 Paragraph 4.77 (see example below).

General Ledger Accounts for Revisions:

General Ledger (GL) Accounts at Administration/GL Accounts under the heading "Revisions" have two different GL Account types:

1. Suspense Account for Transferring Balances: This GL Account is used for revisions of a lease (e.g. modification or remeasurement). When a revision is complete, we will freeze the old version of this lease. The final journal entry for the old version will zero out the balance sheet accounts (listed below) with any difference (if the balance sheet account do not net to zero) booked to the Suspense Account. This final journal entry is reversed as the first entry of the revision.

   1. Lessee: Lease Asset, Accumulated Amortization, Interest Payable, Lease Liability

   2. Lessor: Deferred Inflow of Resources, Interest Receivable, Lease Receivable  

2. Gain/Loss Account:  This GL Account is used if:

   1. Your revision start date and end date are in the same month (i.e., terminating the lease). The difference between your balance sheet accounts (if any) will be recorded in a Gain/Loss Account. (GASB 87: Paragraphs 77-79) (GASB 96: Paragraphs 52, 56, 57) (GASB 94: Paragraphs 73-75)

   2. Lessee:

      1. If your revision's adjustment of the Liability causes the carrying amount of the Lease Asset to be reduced to $0, then any remaining amount will be recorded in a Gain/Loss Account.  (GASB 87: Paragraphs 33,73) (GASB 96: Paragraphs 28, 55) (GASB 94: Paragraphs 51, 71)

      2. If your revision is an Impairment, the reduction of the Lease Asset is recorded in a Gain/Loss Account. (GASB 87: Paragraph 34) (GASB 96: Paragraph 41) (GASB 94: Paragraph 52)

   3. Lessor:

      1. If your adjustment of the Lease Receivable causes the carrying amount of the Deferred Inflow of Resources to be reduced to $0, then any remaining amount will be recorded in Gain/Loss Account. (GASB 87: Paragraph 75) (GASB 94: Paragraphs 69)

My Leases

Lease Status:

Incomplete: This status indicates that all required fields are not filled out. Leases in an Incomplete status cannot be exported at My Leases.

Review: This status is only available if Require Review policy is selected at Administration/Policies. Review status requires a reviewer (other than the user who last edited the lease) to approve the lease. Leases in a Review status cannot be exported at My Leases.

Complete: This status indicates all required fields are entered. If Require Review Policy is checked, this lease was also approved by a reviewer.

Deleted: This lease was deleted. Leases in a Deleted status cannot be exported at My Leases.

Data By Lease

This selection produces an additional tab in an export called “Data By Lease” with values for each selected lease for the GL Start Date to the GL End Date.  This feature is currently available for the Amortization Schedule export.

Add Lease Screen

Asset Type:

Lessees under GASB 87, GASB 96 and GASB 94 require separate footnote reporting.

• Select only non-SBITA Asset Types for GASB 87 footnote exports

• Select SBITA Asset Types for GASB 96 footnote exports. As defined in GASB 96, SBITA means subscription-based information technology arrangements.

• Select PPP Asset Types for GASB 94 footnote exports.

Technical Guidance:

Start Date:

Summary Guidance: The Start Date is the:

• Initial Application Date of the lease standard for leases that begin prior to the Initial Application Date. The leases are measured using the facts and circumstances as of this date.

• Commencement date for leases that begin after the Initial Application Date. The commencement date is defined as the date on which the lessor makes an underlying asset available for use by a lessee.

Technical Guidance:

End Date:

Summary Guidance: The End Date is typically the last day of the lease. However, you must consider early termination options and renewal options. If you determine that the lessee or the lessor will exercise an early termination option, then use the date of the early termination option as the End Date. If you determine that the lessee or the lessor will exercise one or more renewal options, use the last day of the renewal option(s) you are reasonably certain to exercise.

Technical Guidance:

Lease Term:

Summary Guidance: The Lease Term is the number of months from the Start Date to the End Date. Exclude leases with a maximum possible term of 12 months or less (including any options to extend).

1. The Start Date is not the date you sign the lease but instead is the Commencement Date of the lease, which is defined as the date on which the lessor makes an underlying asset available for use by a lessee.

2. The End Date is typically the last day of the lease. However, you must consider early termination options and renewal options. If you determine that the lessee or the lessor will exercise an early termination option, then use the date of the early termination option as the End Date. If you determine that the lessee or the lessor will exercise one or more renewal options, use the last day of the renewal option(s) you are reasonably certain to exercise.

Tool Tip: Lease Term Guidance Wizard: This wizard is meant to help you in 2 ways:

1. Guide you to correctly identify the Lease Term as there involves judgment with regards to early termination options and renewal options.

2. Create an audit trail of your answers for review by you, management or your auditors.

Technical Guidance:

Lease Asset Life:

Summary Guidance: The Lease Asset Life (applicable to Lessee only) is almost always the same as the Lease Term. However, for leases in which the lessee is reasonably certain to exercise an option to purchase the underlying asset, the Lease Asset Life is the useful life of the asset (i.e., how long the asset will be available for your use), which can be longer than the Lease Term. Exclude leases that transfer ownership, but include leases where the lessee can exercise a purchase option. The Lease Asset is amortized to expense over the Lease Asset Life. For a Lease Asset that should not be amortized (e.g., land that is not depreciable), enter 999,999,999 in the Lease Asset Life field. This will reduce the amortization expense to either 0.00 or an immaterial amount.

The software uses a full month convention, amortizing evenly over the number of months in the Lease Asset Life. If your lease ends in the middle of the month, the Lease Asset Life defaults to Term minus one month to stop the amortization in the second to last month. You can update Lease Asset Life as needed for different expense recognition. See Example below.

Technical Guidance:

Discount Rate:

Summary Guidance: 

Lessee: The Discount Rate should be the annual rate implicit in the lease. If inputs to the implicit rate are not readily determinable, which is often the case, the Discount Rate is then the lessee's incremental borrowing rate (i.e., what the lessee can borrow under the same payment stream and timeframe).

Lessor: The Discount Rate charged by the lessor to the lessee, which may be the rate implicit in the lease.

Implicit Rate: When calculating the implicit rate, GASB 87, 94, 96 do not provide a formula but reference paragraphs 173–187 of Statement 62. Also, Implementation Guide 2019-3 Paragraphs 4.31 provides an example of calculating the implicit rate derived when:

• PV of Lease Payments = Fair Value of right to use asset (Download Calculator).

  • Note: The PV of Lease Payments is a different calculation than the sum of Total Payments. The sum of Total Payments must be greater than the Fair Value of the underlying asset in order to arrive at an implicit rate.

GASB 87 superseded Paragraph 271 of GASB 62, which included a definition of the Interest Rate Implicit in the Lease. Because this definition is superseded, you would have to use professional judgment to deem it a reasonable approach. The definition provided a formula for calculating the implicit rate derived when:

• PV of Lease Payments + PV of Lessor’s Residual Value = Fair Value of Asset (less investment tax credits) + Lessor’s Initial Direct Costs (Download Calculator).

  • Note: The PV of Lease Payments is a different calculation than the sum of Total Payments. The sum of Total Payments must be greater than the Fair Value of the underlying asset in order to arrive at an implicit rate.

Add Revision: The following Revision types will require you to input a new discount rate on your Revision Date:

• Modification (amendment of a lease)

• Remeasurement of: a) lease term or b) purchase option

You would input the same Discount Rate (entered in the previous version of the lease) for all other Revision types.

Technical Guidance:

Incentives Received (Lessee) / Incentives Paid (Lessor):

Summary Guidance: Incentives Received (lessee) or Incentives Paid (lessor) are:

1. Payments (at or before the Start Date) made by the lessor to the lessee (e.g., lessor pays cash to lessee for a furniture purchase).

2. The reimbursement or assumption by a lessor of costs of a lessee (e.g., lessor pays off lessee's remaining payments from a previous office lease in order to have them relocate early).

Any payments by the lessor to the lessee after the Start Date should not be included in this field. Instead, these payments should be:

• Lessee: entered as a negative payment stream in the Lease Payments section of the software

• Lessor: entered as a negative receipts stream in the Lease Receipts section of the software
  
  Technical Guidance:

Initial Direct Costs:

Summary Guidance: Initial Direct Costs (applicable to Lessee only) are capitalized into the Lease Asset. These are costs that are necessary to place the lease asset in service (i.e., moving costs or implementation fees). Initial Direct Costs do not include commissions, legal fees or tax advisory fees as those fees are expensed as incurred. Initial Direct Costs also include the initial implementation stage (configuration, coding, testing, installation and costs to place the asset into service) for SBITA assets under GASB 96.

Technical Guidance:

Add Lease Payment Stream (Lessee):

Summary Guidance: For a comprehensive list of payments that are considered Lease Payments, see our Technical Guidance section below. In summary, Lease Payments include:

• fixed payments

• variable lease payments (see details and examples below) that depend on an index or rate that are measured on the Start Date

• purchase cost at the End Date of a lease

• termination fees

• residual value guarantees

• lease incentives paid after the Start Date, which reduce Lease Payments

If you desire to capture payments that do not fit the definition of Lease Payments, they can be entered in the section titled, "Variable Expense and Non-Lease Payments."

Variable lease payments are defined as payments made by a lessee to a lessor for the right to use an underlying asset that vary because of changes in facts or circumstances occurring after the commencement date (Start Date), other than the passage of time. As summarized in the table below, variable lease payments are either a:

1. Lease Payment (entered in this section); or

2. Variable Lease Expense (entered in the Payment Stream of "Variable Expense and Non-Lease Payments")

Technical Guidance:

Add Lease Receipt Stream (Lessor):

Summary Guidance: For a comprehensive list of receipts that are considered Lease Receipts, see our Technical Guidance section below. In summary, Lease Receipts include:

• fixed payments

• variable lease payments (see details and examples below) that depend on an index or rate that are measured on the Start Date

• residual value guarantees that are fixed in substance

• lease incentives paid after the Start Date, which reduce Lease Receipts

Note: The following are not deemed Lease Receipts:

• Exercise of purchase option: record as inflow of resources when option is exercised

• Termination fees: record as inflow of resources when termination option is exercised

• Residual value guarantees that are not fixed in substance: record as inflow of resources when guarantee is required

Download a file to help you calculate Receipt Streams that increment by amount or by percentage: Payment Stream Calculator

If you desire to capture payments that do not fit the definition of Lease Receipts, they can be entered in the section titled, "Variable, Other and Non-Lease Receipts."

Variable lease receipts are defined as receipts received by the lessor for the right to use an underlying asset that vary because of changes in facts or circumstances occurring after the commencement date (Start Date), other than the passage of time. As summarized in the table below, variable lease receipts are either a:

1. Lease Receipt (entered in this section); or

2. Variable Lease Revenue (entered in the Receipt Stream of "Variable, Other and Non-Lease Receipts")

Technical Guidance:

Variable Expense & Non-Lease Payments (optional for Lessee):

Summary Guidance: This is an optional tab which can be used to track Variable Lease Expense and Non-Lease Payments within the software. The reason for including these payments are discussed below.
Variable Lease Expense: There are three types of variable lease payments. Each is either included as a Lease Payment or a Variable Lease Expense. Payments that were excluded from the Lease Payment section above would be included here as a Variable Lease Expense. Variable Lease Expense is a required footnote disclosure. While including this information in the software is optional, it is recommended for ease in populating your footnotes. The three types of variable lease payments are:

1. Payments dependent on an index or a rate initially measured at the Start Date. These payments should NOT be entered here as they are included in the "Lease Payment" section.

2. Payments dependent on an index or a rate that change after the Start Date. Each time there is a change in the payment resulting from a change in the reference index or rate, record here as a Variable Lease Expense.

3. Payments that vary because of changes in circumstances, not related to an index or rate (e.g., payments based on a % of sales). This type of payment would be included as a Variable Lease Expense.

The different types of variable lease payments, and the accounting treatment for each are summarized below.

Non-Lease Payments are any payments that are not deemed Lease Payments or Variable Lease Expenses. They include nonlease components and any other payments that are unrelated to the lease standard. The software allows you to enter Non-Lease Payments that are made at the same time as Lease Payments in order to provide a complete journal entry. Some examples of Non-Lease Payments include:

• Nonlease components (maintenance services or other activities that transfer a good or service)

  • Annual Maintenance on Lease Asset

  • Parking expenses

  • Common Area Maintenance (CAM)

Combining lease and nonlease components occurs only if it is not practicable to determine a best estimate for price allocation for some or all components in the contract.
Technical Guidance:

Nonlease Components: Technical Guidance:

Variable, Other & Non-Lease Receipts (optional for Lessor):

Summary Guidance: This is an optional tab which can be used to track Variable Lease Revenue and Non-Lease Receipts within the software. The reason for including these payments are discussed below.
Variable Lease Revenue: There are three types of variable lease receipts. Each is either included as a Lease Receipt or Variable Lease Revenue. Receipts that were excluded from the Lease Receipts section above would be included here as Variable Lease Revenue. Variable Lease Revenue is a required footnote disclosure. While including this information in the software is optional, it is recommended for ease in populating your footnotes. The three types of variable lease receipts are:

1. Receipts dependent on an index or a rate initially measured at the Start Date. These receipts should NOT be entered here as they are included in the "Lease Receipts" section.

2. Receipts dependent on an index or a rate that change after the Start Date. Each time there is a change in the receipt resulting from a change in the reference index or rate, record here as Variable Lease Revenue.

3. Receipts that vary because of changes in circumstances, not related to an index or rate (e.g., receipts based on a % of sales). This type of receipt would be included as a Variable Lease Revenue.

The different types of variable lease receipts, and the accounting treatment for each are summarized below.

Other Receipts are any receipts that are not deemed Lease Receipts nor Variable Lease Receipts but recorded as Other Revenue:

• Exercise of purchase option: record as inflow of resources when option is exercised

• Termination fees: record as inflow of resources when termination option is exercised

• Residual value guarantees that are not fixed in substance: record as inflow of resources when guarantee is required

Non-Lease Receipts are any other receipts that are not deemed Lease, Other or Variable Lease Receipts. They include nonlease components and any other receipts that are unrelated to the lease standard. The software allows you to enter Non-Lease Receipts that are made at the same time as Lease Receipts in order to provide a complete journal entry. Some examples of Non-Lease Receipts include:

• Nonlease components (maintenance services or other activities that transfer a good or service)

  • Annual maintenance receipts on Lease Asset

  • Parking receipts

  • Common Area Maintenance (CAM)

Combining lease and nonlease components occurs only if it is not practicable to determine a best estimate for price allocation for some or all components in the contract.
Technical Guidance:

Nonlease Components: Technical Guidance:

Lease Term Guidance Wizard

Lease Term:

Summary Guidance: The Lease Term is the number of months from the Start Date to the End Date. Exclude leases with a maximum possible term of 12 months or less (including any options to extend).

1. The Start Date is not the date you sign the lease but instead is the Commencement Date of the lease, which is defined as the date on which the lessor makes an underlying asset available for use by a lessee.

2. The End Date is typically the last day of the lease. However, you must consider early termination options and renewal options. If you determine that the lessee or the lessor will exercise an early termination option, then use the date of the early termination option as the End Date. If you determine that the lessee or the lessor will exercise one or more renewal options, use the last day of the renewal option(s) you are reasonably certain to exercise.

Tool Tip: Lease Term Guidance Wizard: This wizard is meant to help you in 2 ways:

1. Guide you to correctly identify the Lease Term as there involves judgment with regards to early termination options and renewal options.

2. Create an audit trail of your answers for review by you, management or your auditors.

Technical Guidance:

Reasonably Certain:

Summary Guidance: Reasonably Certain is not a guess at what you would most likely do; rather, it is an assessment considering the following economic incentives or factors relevant to that assessment:

1. Contract-based factors

2. Asset-based factors

3. Market-based factors

4. Entity-based factors

An entity's assessment will often require the consideration of a combination of those factors, as they are interrelated.

Technical Guidance:

Add Revision (Lessee):

Summary Guidance:  Adding a Revision is how you amend, modify, remeasure or change a lease at or before the end of the lease. By selecting the "Add Revision" button on the top right of the screen in edit mode, the software will freeze the lease and then allow you to change parameters that only affect the lease on/after the date of the Revision. The modified lease payments will adjust the lease liability with a corresponding adjustment to the Lease Asset. If your revision's adjustment of the Liability causes the carrying amount of the Lease Asset to be reduced to $0, then any remaining amount will be recorded in a Gain/Loss Account. 

Below is a list of Revisions types:
Modification: This is an amendment to a lease (including lease termination). If the two criteria below are not met, you shall edit lease and select "Add Revision" button on the top right of the screen. An entity shall account for initial direct costs, lease incentives in the same manner as those items would be accounted for in connection with a new lease.
Do not adjust the accounting for the original lease through the end of its term; instead, create a new lease for the Modification (amendment) if the following exist:

1. Modification grants an additional right of use not in the original lease (e.g., original lease includes 10,000 sq. ft. and amendment includes an additional 2,000 sq. ft.).

2. Lease payments increased commensurate with standalone price of additional right of use.

Remeasurement: Reassess lease due to an event (i.e., no contract amendment). A remeasurement comes in the following three forms:

1. Contingency resolved such that variable lease payments become fixed

2. Change in amounts probable under Residual Value Guarantee or any other estimated payments (except changes in an index or rate, which are variable expenses)

3. Reassessment of:

   1. Lease Term: For termination option or renewal options, the reassessment occurs at the election of the option exercise (or election not to exercise an option previously determined to do so) and NOT when decision has been reached to change what was reasonably certain (GASB 87: Paragraphs 15a,15b, 25a, Implementation Guidance-2020 Paragraph 4.8) (GASB 96: Paragraphs 12a, 12b) (GASB 94: Paragraphs 13a, 13b), unless an event specified in the lease contract that requires an extension or termination of the lease takes place. (GASB 87: Paragraph 15c) (GASB 96: Paragraph 12c) (GASB 94: Paragraph 13c)

   2. Purchase option: Reassessment occurs when decision is reached to exercise or not exercise (i.e., changed from reasonably certain to not reasonably certain, or vice versa). (GASB 87: Paragraph 25c, Implementation Guide 2019-3 Paragraphs 4.34-4.35)

4. There is a change in the interest rate the lessor charges the lessee, if used as the initial discount rate

Impairment of Lease Asset: Lessee reduces Lease Asset with adjustment recognized in a Gain/Loss Account.
Change lease data in the middle of a lease: This Revision is not part of the technical guidance, but rather a practical consideration in which you can change a parameter of the lease (e.g., Location, GL Accounts) in the middle of the lease, allowing lessee to report on that lease differently from the date of the Revision.
Other Revision Tool Tips: After selecting "Add Revision" in edit mode, for the Discount Rate below, take one of the two following actions:

(1) GASB 87: Paragraph 27, GASB 96: Paragraph 22, GASB 94: Paragraph 46

Technical Guidance (GASB 87): The technical guidance for all types of Revisions are numerous; therefore, the main provisions are referenced below:
Modifications: (Paragraphs 71-74, 77-78)
Remeasurements: (Paragraphs 15, 25-29, 33)
Impairment: (Paragraph 34)

Technical Guidance (GASB 96): The technical guidance for all types of Revisions are numerous; therefore, the main provisions are referenced below:
Modifications: (Paragraphs 52-57)
Remeasurements: (Paragraph 12, 20-24, 28)
Impairment: (Paragraph 41)

Technical Guidance (GASB 94): The technical guidance for all types of Revisions are numerous; therefore, the main provisions are referenced below:
Modifications: (Paragraphs 66-68, 71-72, 75)
Remeasurements: (Paragraph 13, 44-48, 51)
Impairment: (Paragraph 52)

Add Revision (Lessor):

Summary Guidance:  Adding a Revision is how you amend, modify, remeasure or change a lease at or before the end of the lease. By selecting the "Add Revision" button on the top right of the screen in edit mode, the software will freeze the lease and then allow you to change parameters that only affect the lease on/after the date of the Revision. The modified lease payments will adjust the lease liability with a corresponding adjustment to the Lease Asset. If your revision's adjustment of the Liability causes the carrying amount of the Lease Asset to be reduced to $0, then any remaining amount will be recorded in a Gain/Loss Account. 

Below is a list of Revisions types:
Modification: This is an amendment to a lease (including lease termination). If the two criteria below are not met, you shall edit lease and select "Add Revision" button on the top right of the screen. An entity shall account for lease incentives in the same manner as a new lease.
Do not adjust the accounting for the original lease through the end of its term; instead, create a new lease for the Modification (amendment) if the following exist:

1. Modification grants an additional right of use not in the original lease (e.g., original lease includes 10,000 sq. ft. and amendment includes an additional 2,000 sq. ft.).

2. Lease receipts increased commensurate with standalone price of additional right of use.

Remeasurement: Reassess lease due to an event (i.e., no contract amendment). A remeasurement comes in the following three forms:

1. Contingency resolved such that variable lease receipts become fixed

2. Reassessment of:

   1. Lease Term: For termination option or renewal options, the reassessment occurs at the election of the option exercise (or election not to exercise an option previously determined to do so) and NOT when decision has been reached to change what was reasonably certain (GASB 87: Paragraphs 15a,15b, 25a, Implementation Guidance-2020 Paragraph 4.8) (GASB 94: Paragraphs 13a, 13b), unless an event specified in the lease contract that requires an extension or termination of the lease takes place. (GASB 87: Paragraph 15c) (GASB 94: Paragraph 13c)

3. There is a change in the interest rate the lessor charges the lessee

Change lease data in the middle of a lease: This Revision is not part of the technical guidance, but rather a practical consideration in which you can change a parameter of the lease (e.g., Location, GL Accounts) in the middle of the lease, allowing lessee to report on that lease differently from the date of the Revision.
Other Revision Tool Tips: After selecting "Add Revision" in edit mode, for the Discount Rate below, take one of the two following actions:

(1) GASB 87: Paragraph 51, GASB 94: Paragraph 29

Technical Guidance (GASB 87): The technical guidance for all types of Revisions are numerous; therefore, the main provisions are referenced below:
Modifications: (Paragraphs 71-72, 75-77, 79)
Remeasurements: (Paragraphs 15, 49-52, 54)

Technical Guidance (GASB 94): The technical guidance for all types of Revisions are numerous; therefore, the main provisions are referenced below:
Modifications: (Paragraphs 66-70, 73-74)
Remeasurements: (Paragraph 13, 27-30, 33)