19.4 The calculation of individual contracts

19.4.1 Calculation spreadsheet for individual contracts

Each contract has a separate calculation that can be located by clicking on the contract in the overview under Title.

This makes the calculation spreadsheet of an individual contract with all the lease details appear.

To go back to the overview, click on Menu and go directly to the reconciliation spreadsheet by clicking Reconciliation. Please note that the tab for individual contracts will not appear and be updated until you click on the contract in the menu. The individual contract tab can be removed by clicking, Clear lease sheet.

19.4.2 Data that registered in SharePoint are available for the individual contract.

Under the Use column, TRUE means that the period is included in the calculation below and FALSE means it’s not included. The best example is an option to extend that’s included if it’s true and not if it’s false. Please note that name of the status depends on the language you use in Excel.

In the Lease payments column, Continue means that it continues with lease payments from the original period. If a separate payment is registered in SharePoint as illustrated below, the amount (80000) will appear instead of Continue.

On the right side of Lease is terminated, TRUE means that the contract has been terminated, and FALSE means that the contract has not been terminated. If the lease is terminated, the termination date will be shown.

Other information that are registered in SharePoint will be disclosed by clicking on the button on the left-hand side and will be hidden by clicking on the button.

For each individual contract, you’ll find data for each period as illustrated in the overview below:

You can follow the payments pattern for each contract. The calculation starts in January 2019, where the ROU asset is set to be equal to the lease liability (Unless a different start date is used).

If the lease is acquired through a business combination, the calculation will start on the date of acquisition. The right-of-use asset is set to have the same amount as the lease liability on that date.

If any manual adjustments are made to the calculation spreadsheet, the sheet with changes will automatically marked in red. You’ll get a warning if any worksheet in the calculation file has been changed manually.

19.4.3 Lease payments that occur in the previous month

We can adjust the payment pattern by one month when payment of the lease is due the month before the lease period. The advantage of this is that the lease liability is correctly measured, and that depreciations and interest follow the months of the contract. This feature is selected individually, contract by contract, by answering the questions as illustrated below (“Does the lease payment occur at the end of the previous month?”).

If the lease period follows the normal quarters, but the payment is in the month before, the calculation will appear as illustrated below:

Please note that for leases with this option selected, there’s a difference between the lease liability and the ROU at the date of the implementation of IFRS 16, since the requirements are in accordance with IFRS 16 C8. Meaning that an amount equal to the lease liability, adjusted by the amount of any prepaid or accrued lease payments relating to that lease, should be recognized in the statement of the financial position immediately before the date of the initial application.

19.4.4 Go directly from the calculation file to the contract in SharePoint

From a calculation spreadsheet of an individual contract in the calculation file, you can go directly to the individual contract in SharePoint by clicking Open in SharePoint in the upper right corner.

Please note that the SharePoint add-in will open each time you click on the tab.

This functionality makes it easier and quicker to review and to make changes to an individual contract, since you no longer need to find the contract in SharePoint.