Capital vs. Operating Test

1Name Lease
2First Test
3Second Test
4Third Test
5Fourth Test
6Results

Enter the lease payments.

Payment Varies Constantly "Choose this option if your payment amount increases or decreases by a constant amount or percent each year, for instance, 10,000 per month with a 3% increase each year."

Lease Start:

Lease End:

Amount

Here you should enter the amount of the payment. Include ONLY payments attributable to base rent. Do NOT include amounts for CAM, Tax, Insurance or other operating expenses, because under CURRENT lease accounting rules, those are deemed “executory costs” and are excluded from your minimum lease payments. If the lease contract only states a gross amount for rent payments, you should estimate the base rent portion.

Frequency

Here you should enter how often the payments are made.

First Payment Date

Here you should enter the rent commencement date.

Increase Annually By

Enter a number here specifying the constant annual increase. Later, we will specify if this number is a percentage or an amount.

Increase Type

This specifies if the payment increases by a constant percentage each year or by a constant amount. If the payment increases by an amount that is constant but the increase is not annual, then use the "Payment variance is not constant" option.

Amount

Frequency

Here you should enter how often the payments are made.

First Payment Date

Here you should enter the rent commencement date.

This field is required.

Increase Annually By

Enter a number here specifying the constant annual increase. Later, we will specify if this number is a percentage or an amount.

Increase Type

Note that you can edit and change the amounts in each month(box) in the detailed schedule below. If the lease has a guaranteed residual value, edit the very last payment and include the entire guaranteed residual value as part of the last payment.

Payment Variance is Not Constant "Choose this option if your payment amount increases or decreases by a different stated amount each period. This option allows you to enter different payment streams by entering multiple payment amounts and specifying the start and end date of each payment."

Lease Start:

Lease End:

Amount

Frequency

Here you should enter how often the payments are made.

First Payment Date

Here you should enter the rent commencement date.

Last Payment Date

Here you should enter the rent last date.

Amount

This field is required.

Frequency

Here you should enter how often the payments are made.

This field is required.

First Payment Date

Here you should enter the rent commencement date.

This field is required.

Last Payment Date

Here you should enter the rent last date.

This field is required.



Payments Remain the Same "Choose this option if your payment amount remains the same throughout the lease term."

Lease Start:

Lease End:

Amount

Frequency

Here you should enter how often the payments are made.

First Payment Date

Here you should enter the rent commencement date.

Amount

This field is required.

Frequency

Here you should enter how often the payments are made.

This field is required.

First Payment Date

Here you should enter the rent commencement date.

This field is required.

INITIAL DIRECT COST	RENEWAL OPTION	NON-RENEWAL PENALTY	ARO	PURCHASE OPTION	TERMINATE OPTION	GUARANTEED RESIDUAL VALUE

Amount:	Renew For:	Amount:	Amount:	Amount:	Amount:	Amount:
Note that you can edit and change the amounts in each month(box) in the detailed schedule above. If the lease has a guaranteed residual value, edit the very last payment and include the entire guaranteed residual value as part of the last payment.
		% Discount Rate Required.		Fair value of Leased Asset Fair value of Leased Asset required.

Amount (Start with '=' for formula entry)	Frequency	First Payment Date	Increase/Decrease Annually By	Increase/Decrease Type

Payment Schedule

Payment Schedule

Payment Schedule

Payment Schedule

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