IBM Support

TRIRIGA Lease Accounting discrepancies with Initial Direct Costs?

Technical Blog Post


TRIRIGA Lease Accounting discrepancies with Initial Direct Costs?



My name is Edgar Mengelberg and I have been working with the Maximo and TPAE product suite in various Support roles for over 15 years and recently started to further work with the full TRIRIGA product suite.


A typical scenario would show that a client has a $75,000 indirect cost at the very beginning of a contract.

Often the question arises if it would be feasible to have a “0” period in order to tie the Final Rent Payment to the Final Rent Expense and in that way eliminate any discrepancies you may have with the Initial Direct Costs.

For the Accounting 842 standard, the initial direct cost should be recorded as an increase in the right-of-use asset, however should not be recorded as part of the Lease liability.

The liability is calculated using the net rent column.

Therefore this in turn is working as designed.

If you find this short blog useful ,  please click the "Like" button to show your appreciation and follow me here -->  Follow me and my blogs on DevWorks here!



[{"Business Unit":{"code":"BU005","label":"IoT"}, "Product":{"code":"SSHEB3","label":"IBM TRIRIGA Application Platform"},"Component":"","Platform":[{"code":"PF025","label":"Platform Independent"}],"Version":"","Edition":""}]