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
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.
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.
Token ID is kept secure using SHA-1 encryption.
All the data is backed up on Microsoft azure.
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.
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.
The number of leases that can be generated in 16Leases differs as per the purchased plan. For Free, Premium, and Enterprise plan, one can generate 3, 30, and unlimited leases respectively.
A user needs to click the plus button provided on the Dashboard.
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
There are three types of lease accounting frequencies: yearly, quarterly, and monthly.
It contains the necessary information about the leases a user generates in a tabular format.
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.
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.
16Leases provides a wide range of currency options that allows a user to perform lease accounting for international transactions:
3) US Dollar
If a currency is not readily available, then user can create it as per his wish.
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.
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.
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.
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.
There are three different plans available for 16Leases: Free, Premium, and Enterprise. For more information, one can visit 16Leases Home Page.
The technical support team is available from 11 am to 6 pm, IST from Monday to Friday.
We provide support through Phone, Email, and Remote Access.
We provide training to every user before he starts using the application. This helps him to understand every aspect of the application.
It is mandatory to add the company name, currency, financial year-end, and reporting frequency.
Yes, direct adjustments can be made in the payment schedule by visiting the payment schedule option and manually entering the payment.
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.
Yes, you can attach multiple documents to a lease created. However, this feature is not available in the free trial.
Yes, it can be manually customized, but this feature is only available for Premium and Enterprise plans.
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.
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.
There are two different levels viz., basic and admin. Admin has complete access to each feature, and he only can add more users.
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.
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.
You need to add the account code, type, name, and the company to which the account is associated.
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.
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
A lease payment is an agreement between the owner of the asset and a lessee.
The payment frequencies available are – Yearly, Monthly, quarterly and half-yearly.
The number of payments in a lease cycle depends on the user, as to how much he owes to the lessor.
The types of reporting frequencies are – Yearly, Monthly, quarterly and half-yearly.
The lease inception date is the date when the lease agreement or contract was issued.
The lease end date is the date when the lease contract or agreement is terminated.
The borrowing rate is the interest rate on which a particular asset or lease is borrowed.
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.
Before dated payment is the payment that the lessor receives in advance.
A lease payment schedule lists the number of payments date wise that are to be made in a lease life cycle.
The number of payments is different for each user; it depends on how the lessee wants the payment to happen.
The lease liability is calculated by the rate of interest and the amount the user fills in the lease information screen.
The ROU asset cost is the Right of Use asset that the lessee has taken for use and the cost for it.
The opening balance is the amount that the user inputs on the lease inception date.
Additional balance is the amount the user has added in his data.
The closing balance is the amount that remains outstanding in the account of a lessee at the end of the fiscal period.
Accumulated depreciation is the total cost of depreciation incurred throughout the life of a lease.
Lease liability balance is the remaining balance that the user has at the end of the fiscal period.
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.
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.