We have bifurcated all the lease accounting FAQ into sections

  • 16Leases lease accounting FAQs
  • General lease accounting FAQs

From here, you can get all the information about our software and also information regarding lease accounting. Besides that, you can also reach us out if you have any query regarding lease accounting.

16Leases Exclusive FAQs

1. How is two-factor authentication implemented in 16Leases?

Lease accounting may contain sensitive financial data. For that reason, we have implemented two-factor authentication. Two-factor authentication makes sure that no data breach occurs. First, the user needs to input his password, and if the correct password is added, a token ID page opens. A token ID is generated and sent to the registered email ID. The user can only open the 16Leases account when he enters the accurate token ID on the Token ID page.

2. What is the “Token ID,” which is generated when a user signs in to 16Leases account?

Token ID is a unique code randomly generated when a person enters the correct password when he logs in. The code generated is sent to the email account and then entered on the token ID page to access of 16Leases account.

3. How is the delivery of Token ID kept secure?

Token ID is kept secure using SHA-1 encryption.

4. Where all the user’s data is backed up?

All the data is backed up on Microsoft azure.

5. Is the cloud storage used by 16Leases secure?

The cloud storage (Microsoft Assure) we use is safeguarded by Microsoft Azure Trust Center, and it is also compliant with numerous compliant programs assuring that security is up to the mark.

6. What a user should do if he forgets his 16Leases account password?

In case you forget your password, you need to click ‘forget password’ link on the 16Leases login screen, and we will send you instructions on how to recover it on your registered email address.

8. How to generate a new lease in 16Leases?

A user needs to click the plus button provided on the Dashboard.

9. What are all the lease adjustments the application allows a user to make?

TThese are the adjustments a user can make while using 16Leases application:
1) Expected residual value guarantee
2) Penalty for termination
3) The exercise price of purchase option
4) Lease incentive
5) Initial direct costs
6) Dismantling and restoration costs

10. What are the lease accounting frequencies?

There are three types of lease accounting frequencies: yearly, quarterly, and monthly.

11. What does all information 16Leases Dashboard provide?

It contains the necessary information about the leases a user generates in a tabular format.

12. What is the information that must be added to the lease information screen?

The information that must be added to the lease information screen is – the borrowing rate, the lease inception date, currency, lease end date, date of first payment, the payment frequency, amount of periodic lease payments, number of payments, financial year-end and the reporting frequency.

13. What is the process of lease generation in 16Leases?

For generating a lease, one needs to enter the information in 16Leases lease info screen and make adjustments if there are any. After this, results will be automatically computed by the application.

14. What are the currency options available in 16Leases?

16Leases provides a wide range of currency options that allows a user to perform lease accounting for international transactions:
1) INR
2) AED
3) US Dollar
4) SAR
5) OMR
6) BHD
7) KWD
8) QAR
If a currency is not readily available, then user can create it as per his wish.

15. Can a created lease be deleted?

Yes, a created lease can be deleted. You select the created multiple leases, which you want to delete, click on the delete option-click, yes, and you can delete the leases in a go.

16. Can you edit a created lease in an account?

Through 16leases, a created lease can be edited in an account. We have three different accounts- Demo, premium, and enterprise. A created lease can be edited in the case of a premium and an enterprise account, but not in the case of a demo account.

17. Does 16Leases offer a Demo Trial?

Yes, 16Leases offers a demo trial (Free Trial) where a user doesn’t need to pay any amount, but he can still use the account for 30 days.

18. What are the different types of licenses available for 16Leases?

There are two types of licenses viz., Business License and Accountant License. A business license is meant for the businesses that want to ease their lease accounting with the help of 16Leases. An Accountant License is meant for CA and CPA firms that want to maintain Lease accounting information with 16Leases for their clients.

19. What are the different types of plans available for 16Leases?

There are three different plans available for 16Leases: Free, Premium, and Enterprise. For more information, one can visit 16Leases Home Page.

20. What are the technical support team’s working hours?

The technical support team is available from 11 am to 6 pm, IST from Monday to Friday.

21. What are the mediums through which we provide support?

We provide support through Phone, Email, and Remote Access.

22. How the support team helps a user to understand the application?

We provide training to every user before he starts using the application. This helps him to understand every aspect of the application.

23. What is the information you need to add while adding a company in 16Leases?

It is mandatory to add the company name, currency, financial year-end, and reporting frequency.

24. Can you make direct adjustments to the payment schedule?

Yes, direct adjustments can be made in the payment schedule by visiting the payment schedule option and manually entering the payment.

25. How many users can access an account?

Through 16leases, a user can access an account; we have three different accounts- Demo account, Premium account, and Enterprise account. In a demo account, there can only be one user, in a premium account, there can only be one user, too; however, in an enterprise account, there can be unlimited users.

26. Can you attach documents such as a lease agreement in an account?

Yes, you can attach multiple documents to a lease created. However, this feature is not available in the free trial.

27. Can a payment schedule be customized in an account?

Yes, it can be manually customized, but this feature is only available for Premium and Enterprise plans.

28. Can I share a generated lease with someone?

Yes, you can share a lease in 16Leases through the share option present on the Dashboard. You need to select the lease and click the share button. Then, enter the email ID of the person whom you want to share the lease. However, the other user must have a 16Leases account.

29. Can one export a lease to Excel?

Yes, you can export a lease from 16Leases to Excel. You can export a lease through the Excel button provided in the bottom-right corner of Lease Liability and Lease ROU Asset page.

30. What are the different access levels provided in 16Leases?

There are two different levels viz., basic and admin. Admin has complete access to each feature, and he only can add more users.

31. How to generate a general ledger through 16Leases?

A user needs to open the account tab where the general ledger option appears on the top. In that option, one needs to add the company name, account, and period for which ledger is required to be generated — after that, clicking on the Process button will generate the general ledger.

32. Can I change the number of Leases appearing on one single page?

Yes, you can change the number of Leases which can appear on a single page by clicking on the items per page option. There are three different options available: 10, 25, and 100. Number of options appear on a page according to the selected option.

33. What is all the information required to be added while creating an account in 16Leases?

You need to add the account code, type, name, and the company to which the account is associated.

34. Can I change the email account after creating the 16Leases account?

Yes, one can change not only the email but also the username. Just click on the profile tab, and there you will be able to edit this information.

35. Are there transition options available in 16Leases?

While entering the lease info, you get the transition options if the date of first payment comes in between Lease inception date and Lease End Date. There are three transition options available:
1) Full retrospective approach
2) Modified retrospective approach with lease standard always applied
3) Modified retrospective approach- ROU asset based on the lease liability

36. What is a lease payment?

A lease payment is an agreement between the owner of the asset and a lessee.

37. What are the payment frequencies available?

The payment frequencies available are – Yearly, Monthly, quarterly and half-yearly.

38. How many payments should be there in a lease cycle?

The number of payments in a lease cycle depends on the user, as to how much he owes to the lessor.

39. What are the types of reporting frequency?

The types of reporting frequencies are – Yearly, Monthly, quarterly and half-yearly.

40. What is a lease inception date?

The lease inception date is the date when the lease agreement or contract was issued.

41. What is a lease end date?

The lease end date is the date when the lease contract or agreement is terminated.

42. What is the borrowing rate?

The borrowing rate is the interest rate on which a particular asset or lease is borrowed.

43. What is the fiscal year-end?

The financial year-end is the end of your fiscal year, which is usually March 31st or December 31st depending on the country in which you operate your business.

44. What is before dated payment?

Before dated payment is the payment that the lessor receives in advance.

45. What is a lease payment schedule?

A lease payment schedule lists the number of payments date wise that are to be made in a lease life cycle.

46. How many payment schedules are there for a lease life cycle?

The number of payments is different for each user; it depends on how the lessee wants the payment to happen.

47. How is a lease liability calculated?

The lease liability is calculated by the rate of interest and the amount the user fills in the lease information screen.

48. What does ROU asset cost mean?

The ROU asset cost is the Right of Use asset that the lessee has taken for use and the cost for it.

49. What is the opening balance?

The opening balance is the amount that the user inputs on the lease inception date.

50. What is an additional balance?

Additional balance is the amount the user has added in his data.

51. What is the closing balance?

The closing balance is the amount that remains outstanding in the account of a lessee at the end of the fiscal period.

52. What is accumulated depreciation?

Accumulated depreciation is the total cost of depreciation incurred throughout the life of a lease.

53. What is a lease liability balance?

Lease liability balance is the remaining balance that the user has at the end of the fiscal period.

54. What is remote access support?

In remote access support, a support team asks a user to provide permission for sharing their screen and giving control of their system. Through this, they provide a solution to the issues a user is facing.

55. What is IFRS 16?

IFRS 16 is an (International Financial Reporting Standards 16) that has been implemented by the International Accounting Standard Board. It is for regulating the lease accounting.