{"id":2707,"date":"2023-12-06T09:15:29","date_gmt":"2023-12-06T13:15:29","guid":{"rendered":"https:\/\/visuallease.com\/?p=2707"},"modified":"2025-11-24T04:12:28","modified_gmt":"2025-11-24T08:12:28","slug":"lease-liabilities-the-true-impact-on-the-balance-sheet","status":"publish","type":"post","link":"https:\/\/visuallease.com\/lease-liabilities-the-true-impact-on-the-balance-sheet\/","title":{"rendered":"The Impact of New Lease Accounting Standards on Valuations &amp; the Balance Sheet"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/visuallease.com\/lease-liabilities-the-true-impact-on-the-balance-sheet\/#In_this_article_well_look_at_the_true_impact_ASC_842_and_IFRS_16_have_on_lease_liability\" >In this article, we\u2019ll look at the true impact ASC 842 and IFRS 16 have on lease liability.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/visuallease.com\/lease-liabilities-the-true-impact-on-the-balance-sheet\/#How_to_do_lease_liability_calculations\" >How to do lease liability calculations<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/visuallease.com\/lease-liabilities-the-true-impact-on-the-balance-sheet\/#Calculating_present_value_of_future_payments\" >Calculating present value of future payments<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/visuallease.com\/lease-liabilities-the-true-impact-on-the-balance-sheet\/#Changes_for_Periodic_Remeasurements_for_Lease_Liabilities\" >Changes for Periodic Remeasurements for Lease Liabilities<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/visuallease.com\/lease-liabilities-the-true-impact-on-the-balance-sheet\/#What_is_a_Right_of_Use_ROU_Asset\" >What is a Right of Use (ROU) Asset?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/visuallease.com\/lease-liabilities-the-true-impact-on-the-balance-sheet\/#How_to_Calculate_ROU_for_Leases\" >How to Calculate ROU for Leases?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/visuallease.com\/lease-liabilities-the-true-impact-on-the-balance-sheet\/#Example_of_Lease_Liabilities_on_a_Balance_Sheet\" >Example of Lease Liabilities on a Balance Sheet<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/visuallease.com\/lease-liabilities-the-true-impact-on-the-balance-sheet\/#Example_of_Changes_in_Lease_Liability_Reporting\" >Example of Changes in Lease Liability Reporting<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/visuallease.com\/lease-liabilities-the-true-impact-on-the-balance-sheet\/#Performing_Lease_Accounting_Calculations\" >Performing Lease Accounting Calculations<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/visuallease.com\/lease-liabilities-the-true-impact-on-the-balance-sheet\/#If_you_want_to_see_for_yourself_how_Visual_Lease_can_streamline_your_lease_liability_calculations_schedule_a_free_demo_now\" >If you want to see for yourself how Visual Lease can streamline your lease liability calculations, schedule a free demo now.<\/a><\/li><\/ul><\/nav><\/div>\n[vc_row type=&#8221;in_container&#8221; full_screen_row_position=&#8221;middle&#8221; scene_position=&#8221;center&#8221; text_color=&#8221;dark&#8221; text_align=&#8221;left&#8221; overlay_strength=&#8221;0.3&#8243; shape_divider_position=&#8221;bottom&#8221;][vc_column column_padding=&#8221;no-extra-padding&#8221; column_padding_position=&#8221;all&#8221; background_color_opacity=&#8221;1&#8243; background_hover_color_opacity=&#8221;1&#8243; column_shadow=&#8221;none&#8221; column_border_radius=&#8221;none&#8221; width=&#8221;1\/1&#8243; tablet_text_alignment=&#8221;default&#8221; phone_text_alignment=&#8221;default&#8221; column_border_width=&#8221;none&#8221; column_border_style=&#8221;solid&#8221;][vc_row_inner column_margin=&#8221;default&#8221; text_align=&#8221;left&#8221; class=&#8221;initial&#8221;][vc_column_inner column_padding=&#8221;no-extra-padding&#8221; column_padding_position=&#8221;all&#8221; background_color_opacity=&#8221;1&#8243; background_hover_color_opacity=&#8221;1&#8243; column_shadow=&#8221;none&#8221; column_border_radius=&#8221;none&#8221; width=&#8221;1\/1&#8243; column_border_width=&#8221;none&#8221; column_border_style=&#8221;solid&#8221;]<div class=\"img-with-aniamtion-wrap center\" data-max-width=\"100%\" data-border-radius=\"none\"><div class=\"inner\"><img decoding=\"async\" data-shadow=\"none\" data-shadow-direction=\"middle\" class=\"img-with-animation \" data-delay=\"0\" height=\"350\" width=\"1160\" data-animation=\"fade-in\" src=\"https:\/\/visuallease.com\/wp-content\/uploads\/2021\/01\/Lease-liabilities-Header.jpg\" srcset=\"https:\/\/visuallease.com\/wp-content\/uploads\/2021\/01\/Lease-liabilities-Header.jpg 1160w, https:\/\/visuallease.com\/wp-content\/uploads\/2021\/01\/Lease-liabilities-Header-300x91.jpg 300w, https:\/\/visuallease.com\/wp-content\/uploads\/2021\/01\/Lease-liabilities-Header-1024x309.jpg 1024w, https:\/\/visuallease.com\/wp-content\/uploads\/2021\/01\/Lease-liabilities-Header-768x232.jpg 768w\" sizes=\"100vw\" alt=\"Lease-liabilities\" \/><\/div><\/div>[\/vc_column_inner][\/vc_row_inner][vc_column_text]\n<ul>\n<li><a href=\"#how\">How to do Lease Liability Calculations<\/a><\/li>\n<li><a href=\"#present\">Calculating present value of future payments<\/a><\/li>\n<li><a href=\"#periodic\">Changes for Periodic Remeasurements for Lease Liabilities<\/a><\/li>\n<li><a href=\"#what\">What is a Right of Use (ROU) Asset?<\/a><\/li>\n<li><a href=\"#calculate\">How to Calculate ROU for Leases?<\/a><\/li>\n<li><a href=\"#liabilities\">Example of Lease Liabilities on a Balance Sheet<\/a><\/li>\n<li><a href=\"#changes\">Example of Changes in Lease Liability Reporting<\/a><\/li>\n<li><a href=\"#performing\">Performing Lease Accounting Calculations<\/a><\/li>\n<\/ul>\n<p>The new <a class=\"inlinks\" href=\"https:\/\/visuallease.com\/software\/lease-accounting\/asc-842-journal-entries\/%E2%80%9D%20with%20%E2%80%9Chttps:\/visuallease.com\/a-complete-guide-to-lease-accounting\/\">lease accounting standards<\/a>, <a href=\"https:\/\/visuallease.com\/asc-842-summary\/\">ASC 842<\/a> and <a href=\"https:\/\/visuallease.com\/ifrs-16-lease-accounting\/\">IFRS 16<\/a>, bring greater visibility into corporate lease obligations. For many companies worldwide, the impact on their balance sheet is expected to grow significantly. In fact, overall balance sheets could increase by as much as $2 trillion due to the accounting change, according to the <a href=\"https:\/\/www.wsj.com\/articles\/new-rule-to-shift-leases-onto-corporate-balance-sheets-1456414200\">Wall Street Journal<\/a>.<\/p>\n[\/vc_column_text][vc_row_inner equal_height=&#8221;yes&#8221; content_placement=&#8221;middle&#8221; column_margin=&#8221;default&#8221; text_align=&#8221;left&#8221;][vc_column_inner column_padding=&#8221;no-extra-padding&#8221; column_padding_position=&#8221;all&#8221; background_color_opacity=&#8221;1&#8243; background_hover_color_opacity=&#8221;1&#8243; column_shadow=&#8221;none&#8221; column_border_radius=&#8221;none&#8221; width=&#8221;1\/2&#8243; column_border_width=&#8221;none&#8221; column_border_style=&#8221;solid&#8221;][vc_column_text]Although the new lease accounting rules have affected the balance sheets for many companies, will they also impact business valuations? How have private companies, which have transitioned since December 15, 2021, to the new ASC 842 standards, been affected?[\/vc_column_text][nectar_btn size=&#8221;small&#8221; button_style=&#8221;regular&#8221; button_color_2=&#8221;Accent-Color&#8221; icon_family=&#8221;none&#8221; text=&#8221;Request Demo&#8221; url=&#8221;https:\/\/visuallease.com\/asc-842-deadline-extension-how-to-plan-for-success\/&#8221;][\/vc_column_inner][vc_column_inner column_padding=&#8221;no-extra-padding&#8221; column_padding_position=&#8221;all&#8221; background_color_opacity=&#8221;1&#8243; background_hover_color_opacity=&#8221;1&#8243; column_shadow=&#8221;none&#8221; column_border_radius=&#8221;none&#8221; width=&#8221;1\/2&#8243; column_border_width=&#8221;none&#8221; column_border_style=&#8221;solid&#8221;]<div class=\"img-with-aniamtion-wrap center\" data-max-width=\"100%\" data-border-radius=\"none\"><div class=\"inner\"><img decoding=\"async\" data-shadow=\"none\" data-shadow-direction=\"middle\" class=\"img-with-animation \" data-delay=\"0\" height=\"326\" width=\"461\" data-animation=\"fade-in\" src=\"https:\/\/visuallease.com\/wp-content\/uploads\/2021\/01\/lease.jpg\" srcset=\"https:\/\/visuallease.com\/wp-content\/uploads\/2021\/01\/lease.jpg 461w, https:\/\/visuallease.com\/wp-content\/uploads\/2021\/01\/lease-300x212.jpg 300w\" sizes=\"100vw\" alt=\"woman working with VL\" \/><\/div><\/div>[\/vc_column_inner][\/vc_row_inner][vc_column_text el_class=&#8221;line_top&#8221;]\n<h2 style=\"text-align: center\"><span class=\"ez-toc-section\" id=\"In_this_article_well_look_at_the_true_impact_ASC_842_and_IFRS_16_have_on_lease_liability\"><\/span>In this article, we\u2019ll look at the true impact ASC 842 and IFRS 16 have on lease liability.<span class=\"ez-toc-section-end\"><\/span><\/h2>\n[\/vc_column_text][vc_column_text el_class=&#8221;line_top title_blue&#8221;]\n<h2 id=\"how\"><span class=\"ez-toc-section\" id=\"How_to_do_lease_liability_calculations\"><\/span>How to do lease liability calculations<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Under the new lease liability calculation rules, there are a number of assumptions you need to make. These include:<\/p>\n<ul>\n<li>The lease\u2019s <strong>residual value guarantee<\/strong><\/li>\n<li>Any rights to <strong>exercise options for renewal, termination, or purchase<\/strong><\/li>\n<\/ul>\n<p>The residual value guarantee \u2014 the estimated fair value of the lease upon termination \u2014 and additional options are used as an estimate of probable amounts owed.<\/p>\n<h2 id=\"present\"><span class=\"ez-toc-section\" id=\"Calculating_present_value_of_future_payments\"><\/span>Calculating present value of future payments<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Using these assumptions, you need to <a href=\"https:\/\/visuallease.com\/how-to-calculate-the-present-value-pv-of-future-lease-payments-in-excel\/\" target=\"_blank\" rel=\"noopener\">calculate the present value<\/a> of the minimum future lease payments. The <strong>discount rate<\/strong> can be the rate implicit in the lease, which is the rate where lease payments and unguaranteed residual value are equal to the fair value of the asset and its associated costs for the lessor.<\/p>\n<p>If the implicit rate isn\u2019t known, you can use your organization\u2019s <strong>incremental borrowing rate (IBR)<\/strong>. According to IASB, IBR is the rate that the lessee could realistically borrow the funds necessary for a similar asset under similar terms.<\/p>\n<h2 id=\"periodic\"><span class=\"ez-toc-section\" id=\"Changes_for_Periodic_Remeasurements_for_Lease_Liabilities\"><\/span>Changes for Periodic Remeasurements for Lease Liabilities<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>These lease liability calculations will need to be remeasured periodically, as the assumptions you make at the inception of a lease often change over time. Not only might the rate or payment estimates vary, but the lease agreement itself could change due to abandonments, asset impairments, and other modifications.<\/p>\n<p>You\u2019ll likely need to perform these calculations for nearly all of your leases, even if they were previously considered operating leases&#8230;<br \/>\nUnder the <a href=\"https:\/\/visuallease.com\/a-complete-guide-to-lease-accounting\/\">new lease accounting standards<\/a>, nearly all leases must be brought onto the balance sheet with ROU asset and liability calculations.<\/p>\n<h2 id=\"what\"><span class=\"ez-toc-section\" id=\"What_is_a_Right_of_Use_ROU_Asset\"><\/span>What is a Right of Use (ROU) Asset?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400\">For a lessee, a right-of-use or right-to-use lease asset is defined as the lessee\u2019s right to occupy, operate or hold a leased asset legally owned by another party during a specific lease term. The new standards require you to record the actual right-to-use of the asset (i.e. the right to use a cargo truck) rather than the actual asset (i.e. the cargo truck itself). This means that the right-of-use asset is an intangible asset.<\/span><\/p>\n<h2 id=\"calculate\"><span class=\"ez-toc-section\" id=\"How_to_Calculate_ROU_for_Leases\"><\/span>How to Calculate ROU for Leases?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400\">The <a href=\"https:\/\/visuallease.com\/guide-to-right-of-use-assets-and-lease-liabilities-under-asc-842\/\" target=\"_blank\" rel=\"noopener\">ROU asset<\/a> is calculated starting from the initial liability of the lease, plus initial direct costs, plus prepaid (or accrued) lease payments, less any lease incentives received.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400\">Written as a formula, this is how to calculate an ROU asset:<\/span><\/p>\n<p><span style=\"font-weight: 400\">Right-of-use (ROU) asset =\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400\">Lease liability present value of lease payments not yet paid at that date<\/span><\/p>\n<p><span style=\"font-weight: 400\">+ initial direct costs incurred by lessee<\/span><\/p>\n<p><span style=\"font-weight: 400\">+ or &#8211; any lease payments made at or before commencement date<\/span><\/p>\n<p><span style=\"font-weight: 400\">&#8211; applicable lease incentives received<\/span><br \/>\n[\/vc_column_text][\/vc_column][\/vc_row][vc_row type=&#8221;in_container&#8221; full_screen_row_position=&#8221;middle&#8221; scene_position=&#8221;center&#8221; text_color=&#8221;dark&#8221; text_align=&#8221;left&#8221; class=&#8221;title_blue line_top&#8221; overlay_strength=&#8221;0.3&#8243; shape_divider_position=&#8221;bottom&#8221; shape_type=&#8221;&#8221;][vc_column column_padding=&#8221;no-extra-padding&#8221; column_padding_position=&#8221;all&#8221; background_color_opacity=&#8221;1&#8243; background_hover_color_opacity=&#8221;1&#8243; column_shadow=&#8221;none&#8221; column_border_radius=&#8221;none&#8221; width=&#8221;1\/1&#8243; tablet_text_alignment=&#8221;default&#8221; phone_text_alignment=&#8221;default&#8221; column_border_width=&#8221;none&#8221; column_border_style=&#8221;solid&#8221;][vc_row_inner column_margin=&#8221;default&#8221; text_align=&#8221;left&#8221; class=&#8221;line_top&#8221;][vc_column_inner column_padding=&#8221;no-extra-padding&#8221; column_padding_position=&#8221;all&#8221; background_color_opacity=&#8221;1&#8243; background_hover_color_opacity=&#8221;1&#8243; column_shadow=&#8221;none&#8221; column_border_radius=&#8221;none&#8221; width=&#8221;1\/2&#8243; column_border_width=&#8221;none&#8221; column_border_style=&#8221;solid&#8221;][vc_column_text]\n<h2 id=\"liabilities\"><span class=\"ez-toc-section\" id=\"Example_of_Lease_Liabilities_on_a_Balance_Sheet\"><\/span><b>Example of Lease Liabilities on a Balance Sheet<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>As stated above, accounting <a class=\"inlinks\" href=\"https:\/\/visuallease.com\/tenant-improvement-allowance-accounting-for-landlords\/\">for leases<\/a> under <a href=\"https:\/\/visuallease.com\/asc-842-summary\/\">ASC 842<\/a> will likely have a material impact on your balance sheet going forward.<\/p>\n<p>In the past, operating leases were unrecorded liabilities, and the only accounts that appeared on balance sheets for these were prepaid or <a href=\"https:\/\/visuallease.com\/deferred-rent-accounting-101-for-asc-842-and-asc-840\/\" target=\"_blank\" rel=\"noopener\">deferred rent<\/a>.<\/p>\n<p>But now all operating leases except for short-term leases must be capitalized on the balance sheet. This is the most significant change under <a href=\"https:\/\/visuallease.com\/asc-842-summary\/\">ASC 842<\/a>, and one of the most substantial changes to accounting rules in decades.<\/p>\n<p>This is a 7-year real estate lease that, under the old rules, was classified as an operating lease. In the current accounting period (see above), the deferred rent balance of $23,610 is small in comparison to Total Assets of $9.8 million and Total Liabilities of $5.5 million. Notice that there\u2019s no visibility into the nearly $2.5 million future obligation under this lease.<\/p>\n[\/vc_column_text][\/vc_column_inner][vc_column_inner column_padding=&#8221;no-extra-padding&#8221; column_padding_position=&#8221;all&#8221; background_color_opacity=&#8221;1&#8243; background_hover_color_opacity=&#8221;1&#8243; column_shadow=&#8221;none&#8221; column_border_radius=&#8221;none&#8221; width=&#8221;1\/2&#8243; column_border_width=&#8221;none&#8221; column_border_style=&#8221;solid&#8221;]<div class=\"img-with-aniamtion-wrap center\" data-max-width=\"100%\" data-border-radius=\"none\"><div class=\"inner\"><img decoding=\"async\" data-shadow=\"none\" data-shadow-direction=\"middle\" class=\"img-with-animation \" data-delay=\"0\" height=\"686\" width=\"697\" data-animation=\"fade-in\" src=\"https:\/\/visuallease.com\/wp-content\/uploads\/2020\/04\/sample-balance-sheet.jpg\" srcset=\"https:\/\/visuallease.com\/wp-content\/uploads\/2020\/04\/sample-balance-sheet.jpg 697w, https:\/\/visuallease.com\/wp-content\/uploads\/2020\/04\/sample-balance-sheet-300x295.jpg 300w, https:\/\/visuallease.com\/wp-content\/uploads\/2020\/04\/sample-balance-sheet-24x24.jpg 24w, https:\/\/visuallease.com\/wp-content\/uploads\/2020\/04\/sample-balance-sheet-48x48.jpg 48w\" sizes=\"100vw\" alt=\"sample balance sheet showing ASC 842 accounting changes\" \/><\/div><\/div>[\/vc_column_inner][\/vc_row_inner][vc_column_text]\n<h2 id=\"changes\"><span class=\"ez-toc-section\" id=\"Example_of_Changes_in_Lease_Liability_Reporting\"><\/span>Example of Changes in Lease Liability Reporting<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Under <a href=\"https:\/\/visuallease.com\/asc-842-summary\/\">ASC 842<\/a>, however, the impact is substantial. Using a discount rate of 5%, the present value of future payments is almost $2.3 million. This brings the Total Assets for the accounting period to $11.8 million, and Total Liabilities to $7.6 million. With no difference on the P&amp;L between calculations, we\u2019ve made $324,000 in lease payments, yet only reduced the lease liability on the balance sheet by $216,000.<\/p>\n<p>Keep in mind that this is just one lease among a potentially large portfolio of leases for real estate, equipment, and more. As you can imagine, these changes will significantly inflate balance sheets and could potentially impact the comparability of business valuations in the short-term.<\/p>\n[\/vc_column_text][\/vc_column][\/vc_row][vc_row type=&#8221;in_container&#8221; full_screen_row_position=&#8221;middle&#8221; scene_position=&#8221;center&#8221; text_color=&#8221;dark&#8221; text_align=&#8221;left&#8221; class=&#8221;title_blue&#8221; overlay_strength=&#8221;0.3&#8243; shape_divider_position=&#8221;bottom&#8221; shape_type=&#8221;&#8221;][vc_column column_padding=&#8221;no-extra-padding&#8221; column_padding_position=&#8221;all&#8221; background_color_opacity=&#8221;1&#8243; background_hover_color_opacity=&#8221;1&#8243; column_shadow=&#8221;none&#8221; column_border_radius=&#8221;none&#8221; width=&#8221;1\/1&#8243; tablet_text_alignment=&#8221;default&#8221; phone_text_alignment=&#8221;default&#8221; column_border_width=&#8221;none&#8221; column_border_style=&#8221;solid&#8221;][vc_column_text el_class=&#8221;line_top&#8221;]\n<h2 id=\"performing\"><span class=\"ez-toc-section\" id=\"Performing_Lease_Accounting_Calculations\"><\/span>Performing Lease Accounting Calculations<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>When you have multiple leases, it\u2019s very challenging to manage the calculations required under the <a href=\"https:\/\/visuallease.com\/a-complete-guide-to-lease-accounting\/\" target=\"_blank\" rel=\"noopener\">new lease accounting rules<\/a> for each reporting period, especially if you\u2019re using Excel spreadsheets. <a href=\"https:\/\/visuallease.com\/switch\/\" target=\"&quot;_blank\" rel=\"noopener\">&#8220;Making the switch<\/a> to lease accounting software is critical to automate lease liability calculations and ease the transition to the new standards for your business.<\/p>\n<p><a href=\"https:\/\/visuallease.com\/solutions\/lease-accounting-software\/\" target=\"_blank\" rel=\"noopener\">Lease accounting software providers<\/a>, like Visual Lease, ensure you\u2019re compliant with the latest lease changes while easing the burden on your accounting team in terms of:<\/p>\n<ul>\n<li>Managing your lease portfolio<\/li>\n<li>Calculating lease liabilities<\/li>\n<li>Meeting your reporting requirements<\/li>\n<\/ul>\n<p>Take the stress out of lease liabilities by <a href=\"https:\/\/visuallease.com\/visual-lease-software\/\" target=\"_blank\" rel=\"noopener\">contacting our team<\/a> of experts today. Visual Lease makes it simple to streamline your lease liability calculations and ditch your Excel spreadsheets.[\/vc_column_text][\/vc_column][\/vc_row][vc_row type=&#8221;in_container&#8221; full_screen_row_position=&#8221;middle&#8221; scene_position=&#8221;center&#8221; text_color=&#8221;dark&#8221; text_align=&#8221;left&#8221; class=&#8221;learn_about&#8221; overlay_strength=&#8221;0.3&#8243; shape_divider_position=&#8221;bottom&#8221; shape_type=&#8221;&#8221;][vc_column column_padding=&#8221;no-extra-padding&#8221; column_padding_position=&#8221;all&#8221; background_color_opacity=&#8221;1&#8243; background_hover_color_opacity=&#8221;1&#8243; column_shadow=&#8221;none&#8221; column_border_radius=&#8221;none&#8221; width=&#8221;1\/1&#8243; tablet_text_alignment=&#8221;default&#8221; phone_text_alignment=&#8221;default&#8221; column_border_width=&#8221;none&#8221; column_border_style=&#8221;solid&#8221;][vc_row_inner equal_height=&#8221;yes&#8221; content_placement=&#8221;middle&#8221; 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text=&#8221;Learn More&#8221;][\/vc_column_inner][vc_column_inner column_padding=&#8221;no-extra-padding&#8221; column_padding_position=&#8221;all&#8221; background_color_opacity=&#8221;1&#8243; background_hover_color_opacity=&#8221;1&#8243; column_shadow=&#8221;none&#8221; column_border_radius=&#8221;none&#8221; width=&#8221;1\/2&#8243; column_border_width=&#8221;none&#8221; column_border_style=&#8221;solid&#8221;]<div class=\"img-with-aniamtion-wrap right\" data-max-width=\"100%\" data-border-radius=\"none\"><div class=\"inner\"><img decoding=\"async\" data-shadow=\"none\" data-shadow-direction=\"middle\" class=\"img-with-animation \" data-delay=\"0\" height=\"780\" width=\"868\" data-animation=\"fade-in\" src=\"https:\/\/visuallease.com\/wp-content\/uploads\/2021\/02\/img1.png\" srcset=\"https:\/\/visuallease.com\/wp-content\/uploads\/2021\/02\/img1.png 868w, https:\/\/visuallease.com\/wp-content\/uploads\/2021\/02\/img1-300x270.png 300w, https:\/\/visuallease.com\/wp-content\/uploads\/2021\/02\/img1-768x690.png 768w\" sizes=\"100vw\" alt=\"illustration of woman looking into the distance\" \/><\/div><\/div>[\/vc_column_inner][\/vc_row_inner][\/vc_column][\/vc_row][vc_row type=&#8221;in_container&#8221; 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