Fiscal line items

Fiscal line items (FLIs) track the accounting schedule values for each fiscal period. These FLIs are created or recalculated depending on your values for rental payments, incremental borrowing rate, initial direct costs, one-time payments, partial payments, option types, or other values.

The application applies the following business rules to create or recalculate FLIs:
  • If a lease has an Initial Direct Costs value in the Accounting tab, the value is added to the initial Right-of-Use (ROU) asset for ASC 842 / IFRS 16, GASB 87 Lessee, and GASB 96.
  • Any partial first and partial last payments are included in the fiscal period to which they belong. The application looks for the due date of the payment to be in the fiscal period.
  • If the Lease Category contains the term "gross", the lease components and services components are separated based on their values from the Rent Component Assumptions section.
  • If a likely term includes a likely option with an Option Type selection of purchase or termination, the following logic updates the FLI.
    • If the selection is the Purchase Option, the purchase price is included in the calculation of NPV as of the Purchase Price Effective Date of the purchase price.
      Note: For GASB Lessor Accounting standard lease, Purchase Option is for Information purposes only and is excluded from the accounting schedules in acoordance with standard.
    • If the selection is the termination option, then the penalty is included in the calculation of NPV as of the Likely Termination Execute date.
  • Finally, on accounts payable (AP) leases, sum the AP payments minus the accounts receivable (AR) payments. On AR leases, sum the AR payments minus the AP payments. Meanwhile, on the FLI, the liability value, asset value, and net equity always decrease to zero.