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This article provides a detailed breakdown of the Amortization Schedule setup for GASB lessee leases. The information is divided into key sections to help break down the calculations.

Date & Month

The first two columns will show the period for which the lease activity is recorded by Date in (YYYY-MM) format, and the “Month” count.

Amortization Expense & Lease Asset 

Amortization Expense (Column C):

Calculated by dividing the Total Lease Payments by the Asset Life/Term.

Lease Asset Beginning (Cost) (Column D): 

Initial measurement of the Lease Liability & any Initial Direct Cost Minus any Incentives Received.

Lease Asset EOM (Column E): 

Total updated Lease Asset balance after monthly amortization. 

Accumulated Amortization (Column F)

Reflects the opposite sign of Amortization Expense (Column C).

Accumulated Depreciation EOM (Column G):

Shows the aggregate total of (Column F) as of the current month.

NBV (Lease Asset Accumulated Amortization) Balance (Column H):

Shows the total Net Book Value at the end of each month.

Calculated by taking the total Lease Asset - Accumulated Amortization.

Interest Expense & Lease Liability 

LT Liability Beginning (Column I):

• Present Value (PV) of lease payments: payments are discounted back to the start date. For more information, visit Present Value Calculations in LeaseCrunch.

• Payments from the 1st–15th of the month are excluded from PV calculations for base leases but included in ROU Asset. For more information, visit Why is the first payment missing from the Lease Liability?

• Transition leases include all payments in liability calculations but exclude pre-start date payments. For more information, visit What is a Transition Lease?

Interest Expense (Column J):

• Monthly interest is calculated as: (Discount rate/12) × Previous EOM Liability Balance.

Interest Payable (Column K):

• Interest payable reflects the opposite of Column J less Interest paid as Cash. Followed by the pending difference caused by the cash payment to the calculated Interest Expense. 

Interest Payable EOM (Column L):

Shows the remaining Interest balance as of EOM.

LT Liability (Payment at BOM) (Column M)

Monthly payments processed at the beginning of the month (1st - 15th) that were included in the calculation of the lease liability.

LT Liability (Payment at EOM) (Column N)

Monthly payments processed at the end of the month (16th - EoM) that were included in the calculation of the lease liability.

Total ST & LT Liability (Column O):

The total remaining Lease Liability at the end of the month. 

LT Liability (Column P):

Columns provide detailed breakdowns of liabilities due beyond 12 months:

• Calculated by taking Total ST Lease Liability for the month - PV of payment of Interest + Payment amount due within 12 months.

ST Liability (Column Q):

Columns provide detailed breakdowns of liabilities due within 12 months:

• Calculated by taking the total LT Lease Liability for the month - the opposite of the ST Lease Liability value.

LT & ST Liability EOM (Columns R & S):

Reflect the change in the ST & LT Lease Liability within the month.

Cash/Clearing Account & Other Entries 

Cash/AP for Lease Payment at BOM (Column T):

• Payment made between the 1st – 15th of the month.

Cash/AP for Lease Payments at EOM (Column U):

• Payments made between 16th – end of the month.

Cash/AP for Variable Lease Expense Payment (Column V) & Cash/AP for Non-Lease Payment (Column W):

• Payments made in the month for Variable and Non-Lease expenses.

Cash/AP (Summary of all Cash/AP Entries) (Column X):

• Reflects the sum of all cash payments for the month.

Variable and Non-Lease Payments (Column Y to AA):

Specific entries made for variable expenses and non-lease costs are reflected in dedicated GL accounts.

Governmental Fund (Modified Accrual) 

Calculates only the current cash flows of financial resources that are recognized. Long-term liabilities and assets are generally excluded, except when they directly impact the current financial resources.

For leases, this means recognizing payments or interest as revenues when they are due and collectible within the current period.

Expenditures are recorded when incurred, as long as they use current financial resources.

It includes recognizing payments (principal and interest) as expenditures when due, rather than recording a liability or capitalizing an asset, similar to accrual accounting.