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This article provides a detailed breakdown of the Amortization Schedule setup for FASB lessor 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.

Revenue

P&L Amortized Revenue (Column C):

Revenue is recognized on a straight-line basis per day over the lease term. For leases that begin or end mid-month (e.g., February), the system calculates revenue based on the exact number of active days in that month, ensuring accuracy in monthly recognition.

Example for partial months:

First Month: 1/20–1/31 = 22 days.

Last Month: 12/1–12/31 = 30 days.

Days in full months between = 660 days.

Total Days = 712.

Deferred Rent

LT Deferred Rent (Column D):

Shows the difference between the cash receipt and the monthly revenue amount.

LT & ST Deferred Rent EOM (Column E):

Combined total of Short-Term and Long-Term Deferred Rent. 

LT Deferred Rent (Column F):

Provides Deferred Rent to be collected beyond 12 months.

ST Deferred Rent (Column G):

Provides Deferred Rent to be collected within 12 months.

LT Deferred Rent EOM (Column H):

Shows total Long-Term Deferred Rent at the end of the current month. 

ST Deferred Rent EOM (Column I):

Shows total Short-Term Deferred Rent at the end of the current month. 

Initial Direct Costs

IDC Amortization Expense (Column J): 

Any Initial Direct Costs incurred to execute the lease (e.g., legal fees or commissions) will be capitalized and amortized over the lease term on a straight-line basis.

IDC Asset Beginning Expense (Column K): 

The opening balance of the Initial Direct Cost Asset for the period.

IDC Asset (Column L):

Adjustments to the Initial Direct Cost Asset during the period.

IDC Asset EOM (Column M): 

The closing balance of the Initial Direct Cost Asset at the end of the month.

Cash/Clearing Account & Other Entries

Cash/Clearing Lease Receipt (Column N): 

Actual cash inflow from lease receivables during the period.

Cash/Clearing IDC Payment (Column O): 

Cash paid for Initial Direct Costs.

Cash/Clearing Variable Lease Receipt (Column P): 

Cash inflow from Variable Lease Receivables.

Cash/Clearing Non-Lease Receipt (Column Q): 

Other Cash Receipts not related to fixed Lease Receivables.

Summary of All Cash/Clearing Entries (Column R): 

Net cash movement in the clearing account for the period.

Variable Lease Revenue (Column S): 

Revenue recognized from Variable Lease Receivables.

Other P&L Accounts (Column T) & Other BS Accounts (Column U): 

Other income and balance sheet entries not categorized elsewhere.