When a Lease Commences on the Same Day as the Initial Application Date of the Standard
Review this article for information on how to handle a lease that actually begins on your Initial Application Date in Crunchafi Lease Accounting
A lease that commences on the same day as your Initial Application Date of the new accounting standard is not a transition lease.
How to Enter the Commencement Date of the Lease into the Software
If the start date of the lease matches the initial application date of the standard, the software routes and calculates that lease as a transition lease. To bypass this workflow, enter the commencement date of the non-transition lease as one calendar day later than the initial application date.
Example:
Initial Application Date - January 1, 2022
Original Start Date of Lease - January 1, 2022
Start Date Entered into Lease Accounting Software - January 2, 2022
NOTE:
If the entered dates fall in the first half or second half of the month, changing the start date of the lease in the software by one day will NOT affect the calculations generated by the system.