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.
- Runs
- In this tab
- Data sent
- None
- Rounding
- Once, at the end
- Also in
- The Chrome extension
Lease — ASC 842 / IFRS 16, worked
Showing a worked example — type over it
Result
How the lease — ASC 842 / IFRS 16 works.
Lease PV and the ROU asset/liability roll-forward under ASC 842 / IFRS 16 — the liability's payment is fixed on every row and the final row's interest closes it, and the ROU asset amortises straight-line for a finance lease or as the plug to a straight-line cost for an ASC 842 operating lease.
Quoted from the toolbelt spec, the document this tool was built against.
Where these numbers come from.
Negatives are parenthesised because that is what a statement does. The rest is four promises.
Minor units, never floats
Amounts are integers in the currency's smallest unit, end to end. A float never touches a cent.
Rounded once
Rounded once, at the end — never per operand, which is how a split stops summing to the whole.
Unit tested
The arithmetic lives in one unit-tested module, shared without reimplementation with the extension.
No network
There is no request to make. What you type stays in this tab and is gone when you close it.
More in schedules that tie
- Depreciation scheduleStraight-line, declining balance or SYD, with the convention that decides the first period.
- Prepaid & deferred releaseA premium paid on the 17th does not release in twelve equal slices. Day-weighted, or even — your call.
- Loan amortisationLevel payment solved, then walked in minor units so the last payment clears the balance exactly.
Read it in context
- Founder guide · 4 minWhy startups should close their books every monthA monthly close turns a bank balance into numbers an investor, an auditor or a 409A firm will accept. What it is, and why it gets expensive to skip.
- Founder guide · 4 minUS GAAP for early-stage startups, in plain EnglishAccrual accounting, revenue recognition (ASC 606), leases (ASC 842), stock compensation and capitalized software: what each means for a small company.
- Founder guide · 3 minCan you vibe code your startup’s accounting?AI coding tools build a finance dashboard in an afternoon, but not a closed, reconciled, GAAP-basis ledger. Where the line is, and how to stay inside it.
The same number, elsewhere.
A calculator answers the question once. These carry the answer into a product, name what it computed, and argue the method.
- ComponentLeaseScheduleROU asset and liability on diverging curves.
- ComponentScheduleTableOne shell, seven presets. Prepaids through debt.
- ComponentRollForwardOpening → movements → closing → tie. The universal shape.
- TermRoll-forwardOpening → movements → closing, proven
- TermAdjusting entryA close entry to apply accrual accounting
- DocSchedules, accruals & roll-forwardsThe supporting evidence layer. Every balance sheet account needs a schedule behind it, and the schedule must tie.
- EntryJournal entry for an operating lease under ASC 842At commencement, debit Right-of-use asset and credit Lease liability for the present value of the payments. Each payment debits Lease liability and credits Cash; each month-end debits Operating lease cost for the straight-line cost and credits Lease liability for the interest and the right-of-use asset for the rest.
- EntryJournal entry for a finance lease under ASC 842At commencement, debit Right-of-use asset and credit Lease liability for the present value of the payments. Each payment debits Lease liability and credits Cash; each month-end debits Interest expense and credits Lease liability for the interest, and debits Amortization expense and credits the right-of-use asset for straight-line amortization.
- DocCurrency decimal placesHow many decimals each ISO 4217 code is stored at — JPY 0, USD 2, KWD 3.