ASC 842 · IFRS 16
The liability, the ROU asset, the classification and the disclosure table, computed to the standard from the executed agreement and posted to the ledger you already run.
Your lease accounting doesn’t start with a rent payment. It starts with the lease.
The lease schedule is correct the day someone careful builds it. They read the agreement, work out the present value, set up the amortization, and tie it out. Then it has to happen again next month, and every month after, usually in a workbook that started as a copy of last month's.
That is where the errors get in — not in the original judgment but in the two hundredth reproduction of it. A formula that drifted two periods ago. A renewal option that became reasonably certain in March and never made it back into the schedule. A discount rate nobody can now explain the basis for.
And none of it is visible from the ledger. A rent payment looks like a rent payment. The obligation behind it, the classification decision, and the judgment supporting the rate all live in a document that the accounting system never sees.
Enter the terms once. The schedule builds itself, period by period, to the standard.
Present value of the remaining lease payments at your discount rate, amortized period by period with the interest accretion and principal reduction split out.
Opening liability adjusted for prepaid rent, lease incentives received, and initial direct costs — then amortized on the pattern your classification requires.
Operating or finance, applied against the ASC 842-10-25-2 criteria, with the resulting expense pattern built into the schedule rather than bolted on afterwards.
Rate implicit in the lease where determinable, otherwise your incremental borrowing rate — stored with the schedule so the number has a documented basis when an auditor asks.
A change in the contract or a change in your assessment produces a new schedule from the remeasurement date, with the prior periods left intact.
Undiscounted future payments by year with the imputed-interest reconciliation, ready for the disclosure.
Approve once. Post a month at a time — straight into QuickBooks Online, Xero, or Dynamics 365 Business Central, with a document ID on every line and duplicate posting blocked.
Read-only by design. AccelClose never touches cash, vendors, or payments. It reads your ledger and writes journal entries you have already approved — nothing more.
Yes. Upload the executed lease as a PDF and AI extracts the proposed terms — commencement date, payment schedule, escalations, options, incentives. You review and approve every term before anything is built. The AI proposes; the deterministic engine computes the schedule and the journal entry.
Both. The classification drives the expense pattern — a single straight-line lease cost for operating leases, separate interest and amortization for finance leases — and the schedule is built to whichever applies.
A modification changes the contract; a remeasurement changes your assessment of it, such as becoming reasonably certain to exercise a renewal option. Either produces a new schedule from the effective date, with the earlier periods preserved so the history stays auditable.
Yes. IFRS 16 treats substantially all leases like finance leases, so the schedule follows the single-model pattern where that basis is selected.
QuickBooks Online, Xero, and Dynamics 365 Business Central are live and posting today. Sage Intacct works today through ERP-formatted CSV import and export, and any other ERP works the same way.
Not if you elect the short-term exemption for leases of twelve months or less with no purchase option reasonably certain of exercise. Those can be tracked and expensed straight-line without recognizing a liability and ROU asset.
Summarized for general information. Classification, discount rate, and reasonably-certain judgments are yours to make and support — AccelClose builds the schedule and documents the basis you selected.
Try the free interactive demo — no signup — or start a 30-day trial and connect your ledger.