Download D: Ind AS 116 Lease Schedule (Lessee) (.xlsx)
What it does
Lessee lease accounting: present value of payments (with an NPV cross-check), ROU asset, a monthly effective-interest schedule, straight-line ROU depreciation, a financial-year summary with current/non-current split, and journal entries. Handles escalation and advance or arrears payments.
Who it is for
Accountants and auditors working on leases of offices, vehicles and equipment.
How to use it
- Go to the 'Inputs' tab and fill the yellow cells: lease start date (commencement), lease term in months, rent per instalment, how often rent is paid, whether it is paid at the start (advance) or end (arrears) of each period, any escalation (for example 5% every 12 months), and your incremental borrowing rate (the rate at which you could borrow for a similar term and security).
- Fill initial direct costs, lease incentives received, payments made before the start date and any restoration cost provision, if you have them. Leave as 0 if not.
- Leave 'ROU depreciation period' blank to depreciate over the lease term, or type a shorter period (for example the useful life if that is shorter, or a longer one if ownership transfers).
- Look at the results box on 'Inputs': initial lease liability and ROU asset. The 'Schedule' tab shows every month; the 'FY Summary' tab gives the yearly figures for your accounts.
- Use the 'Journal Entries' tab for the entries at commencement and the monthly entries.
- Check the checks box on 'FY Summary'. All should read OK (for example the liability falls to zero at the end of the lease).
Tabs in the file
| Tab | What it holds |
|---|---|
| Inputs | Lease terms, discount rate, and the headline results. |
| Schedule | Month-by-month liability, interest, principal and ROU depreciation. |
| FY Summary | Year-wise finance cost, depreciation, payments, closing liability (current / non-current), ROU asset, and checks. |
| Journal Entries | Entries at commencement and each month. |
Learn the topic
For computation and reconciliation assistance only; not a substitute for formal statutory audit or legal tax advice. All sample data is illustrative and made up. Rates, limits and rules must be checked against current law and your own agreements before use. No tax saving, audit outcome or compliance result is promised.