# Lease — ASC 842 / IFRS 16

> PV of the payments at your IBR, the liability unwind and the ROU asset — straight-line for a finance lease, the plug to a level cost for an operating one.

Source: https://lopifi.com/tools/lease
Part of: Lopifi — US GAAP books on autopilot, reviewed by a CPA (https://lopifi.com)

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- **Group:** Schedules

## Inputs

- `payment` — Payment per period
- `months` — Term (months)
- `rate` — Discount rate % (annual) (The rate implicit in the lease if you can determine it, otherwise your incremental borrowing rate. A private company may elect a risk-free rate by class of asset.)
- `start` — Commencement
- `prepaid` — Prepaid rent (Paid before commencement. Added to the ROU asset, not the liability.)
- `incentives` — Incentives received (Cash from the lessor, such as a tenant improvement allowance. Reduces the ROU asset.)
- `idc` — Initial direct costs (Costs you would not have incurred without the lease, like a broker's commission. Added to the ROU asset.)
- `timing` — Timing
- `classification` — Classification
- `currency` — Currency (ISO 4217 code — sets the decimals: JPY 0, USD 2, KWD 3.)

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