Understanding the Footnote Disclosure for Lessors under ASC 842

The Footnote Disclosure provides financial statement users sufficient information to assess the amount, timing, and uncertainty of cash flows arising from leases. The software provides the quantitative information required by ASC 842. The sections of the Footnote Disclosure are described below.

Note: In some instances, the Amortization Schedule should be run specific to lease classification (Select from the Classification dropdown) or for the entire term of all leases to balance to Footnote Disclosure. 

The Footnote Disclosure is generally run for a full reporting period, for example, January through December.

Operating Classification: Lease Revenue

The first section on the Footnote Disclosure includes the Lease Revenue information for the period the Footnote Disclosure was run. This report is generally run for a full year. 

Amortization Schedule Column C (Revenue)

Operating Classification: Variable lease revenue

Variable Revenue is entered on the Variable & Non-lease Receipts tab in add/edit leases. The amounts included here are items coded to the Variable Expense GL Accounts. If no variable receipts are included within the software, there will be no balance shown on the Footnote Disclosure.

Amortization Schedule Column S (Variable Lease Revenue)

Maturity Analysis

The maturity analysis provides a schedule of the undiscounted future lease payments expected to be received by the lessor under operating leases.