Hi there! Reaching out the FAM/842 experts here! ...
# general
d
Hi there! Reaching out the FAM/842 experts here! My client doesn't use the 842 module within NS since there is only one lease. However within the FAM module, as the lease is currently set up to amortize the ROU, it is expensing part of the lease liability to interest expense when the client is telling us it should be hitting rent expense instead. (it is an operating lease, not a financing lease). Does anyone have any tips for how to make this work correctly?
b
You probably already have this figured out by now, but interest expense in a lease is actually interest accretion. There are some good guides out there show how operating leases work. The one that has been most helpful has been this link: https://netgain.tech/asc-842-transition-blueprint-workbook/ The company uses this as a gate to the model itself, but just add some phony information in the fields to get to the actual excel document.