In a gross lease, the lease may specify that the leasee pay not only the cost of renting an asset but also for non-lease components such as property taxes, insurance, repair costs, and maintenance costs.
According to FASB 842 rules, non-lease components can be expensed, while the lease rent and options must be calculated .
Organizations are permitted to use observable stand-alone prices to estimate the cost of non-lease components. If prices are not available, organizations are permitted to estimate the stand-alone price for non-lease components.
Enter the lease using the Add/Edit Wizard or the Lease Portfolio Console. Both are available on the Process Navigator at Real Estate Portfolio Management / Lease Administration / Lease Portfolio.
With this approach:
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