19.13 Other information about Calculation

19.13.1 The DCF model

The DCF (Discounted Cash Flow) model calculates by using the end day of the month for the payment. This results in calculation of interest for the last period of the payment series as well. It’s possible to change the calculation model to have the payment in the beginning of the period. Answer Yes to the question “Is the lease pre-paid?”.

19.13.2 Depreciations

The monthly depreciation is linear for the duration of the contract term, which is based on the length of the contract.

You can specify the depreciation dates separate from the dates of the lease payment. This can be useful for stopping depreciation in a period and starting again for contracts that are impaired, or for changing a depreciation period under a construction period. Please note that for most lease contracts, the depreciation will be equal to the lease term. So don’t use this functionality unless your contract falls under the exceptions to IFRS 16.

You can postpone depreciations at the beginning of the contract by entering a “Start date of depreciations” that’s different from the start date of the lease. You can also pause depreciations in the middle of the useful life of the contract by registering a change by entering a start date of depreciations. The depreciation will then be paused on the change date and restart on the start date of depreciations.

If the useful life is longer than the lease term, you can extend the depreciation at the end of the contract by entering an “End date of depreciations” that comes after the end date of the lease.

19.13.3 Fixed adjustments

If a lease contains a fixed adjustment, you can specify the fixed adjustment by setting the frequency, adding fixed adjustment in a percentage or an amount and by adding the start and end dates of the adjustments (If different from the end date of the lease). If there’s a fixed amount of the lease payments that’s not supposed to be regulated, you can register the fixed amount to be exempt from the adjustments. More guidance is available by clicking on the question marks.

19.13.4 Daily rates

Customers can have a version with daily rates for leasing. This is useful when lease payments vary with the number of dates in a month. Daily rates are found in the Information about the lease liability section and must be answered Yes to for each contract.

After you have chosen daily rates, your lease payment is automatically set to be the rate you pay each day. The next thing you need to do is to decide the payment structure (Monthly/ quarterly).

You’ll notice that the lease payments, interest and instalments vary from month to month, while the depreciations remain the same, month by month.

19.13.5 Go back to an old calculation

If you need to go back to an old calculation, you can store different versions or use version control.

You locate the version control in the menu behind the file in SharePoint by clicking on the three dots.

In Version control, you can view, restore, or delete any version of the calculation by using the drop-down menu. For example, by restoring version 3.0, you can copy it as the newest version, and it will appear at the top of the list. In the example illustrated above, after clicking Restore, you’ll get a new version (13.0), which is the same as version 3.0.