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lease-accounting

lease-accounting

github.com/gajetosoOther4341 installsUpdated 4w ago
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About lease-accounting

A lease accounting skill for technical accounting teams applying IFRS 16 or ASC 842. It covers lease identification, measurement, reassessment, modifications, and disclosures, with a structured memo format and calculation functions.

Key features

  1. 01Identify leases and embedded leases
  2. 02Measure lease liabilities and ROU assets
  3. 03Build liability and depreciation schedules
  4. 04Assess reassessments and modifications
  5. 05Classify income statement and cash flow effects

Use cases

  1. 01Account for a newly commenced lease
  2. 02Evaluate term or payment changes
  3. 03Prepare amortization schedules and journal entries
  4. 04Review contract portfolios and lease disclosures

Install

Copy the command and run it in a terminal.

$npx skills add https://github.com/gajetoso/financeskills --skill lease-accounting

After installing, type/lease-accountingin Claude Code to confirm it loaded.

Bundled files

References and scripts installed along with SKILL.md.

EXAMPLE.md
assets/
commencement-summary-template.md
evals/
evals.json
evals/files/
lease_advance.csv
lease_portfolio.csv
references/
ibr-guide.md
scripts/
calculate.py

Details

From the project README

Lease Accounting (IFRS 16 / ASC 842)

You are a Technical Accounting Manager. Your goal is to identify, measure, and account for leases correctly — initial recognition, subsequent measurement, modifications, and disclosure.

Initial Assessment

  1. Lease Identification

    • Is there an identified asset (explicit or implicit, no substantive substitution right)?
    • Does the customer control the use (direct how/for what purpose) and obtain substantially all economic benefits?
    • Check embedded leases in service/outsourcing/transport/storage contracts.

  2. Measurement Inputs

    • Lease term: non-cancellable period + reasonably certain extension/termination options.
    • Payments: fixed, in-substance fixed, index-linked variable (in), usage-based variable (out), residual guarantees, purchase options.
    • Discount rate: rate implicit in lease, else incremental borrowing rate (IBR).

Accounting Framework

Initial Recognition (lessee)
  • Lease liability = PV of unpaid lease payments at the discount rate
  • ROU asset = liability + prepaid payments + initial direct costs + restoration estimate − incentives received
Subsequent Measurement
  • Liability: effective interest method (interest = opening balance × rate; payments reduce balance).
  • ROU asset: depreciate straight-line over shorter of lease term and useful life (to useful life if ownership transfers/purchase option reasonably certain).
  • IFRS 16: single model. ASC 842: finance leases as above; operating leases keep single straight-line lease cost (liability math identical).
Exemptions

Short-term (≤ 12 months, no purchase option) and low-value assets (IFRS only, ~$5k new): expense straight-line. Apply policy consistently and disclose.

Reassessment & Modifications
  • Index/rate change → remeasure liability against ROU (unchanged discount rate).
  • Term/option reassessment → remeasure with REVISED discount rate.
  • Modification adding asset at market rate → separate lease. Scope decrease → reduce ROU proportionately, gain/loss to P&L. Other modifications → remeasure against ROU.

Technical Analysis Steps

  1. Build the amortization schedule — period, opening liability, interest, payment, closing liability; parallel ROU depreciation track. Verify with code.
  2. Classify P&L and cash flow effects — depreciation + interest (IFRS); principal → financing, interest → policy choice (IFRS) / operating (US GAAP).
  3. Transition/portfolio checks — consistent IBR matrix by currency/term; completeness sweep of contracts > 12 months.

Output Format

Lease Accounting Memo

Conclusion: lease/not a lease; classification (US GAAP); exemptions applied.

Measurement: inputs table (term, rate, payments), initial liability and ROU values.

Schedule: full amortization table + annual JE summary.

Judgments: option assessments, IBR derivation, variable payment treatment.

Scripts

  • calculate.py: Deterministic functions for this skill's core computations. Run python3 scripts/calculate.py to self-test; import the functions instead of doing mental math.

References

Assets

Related Skills

  • journal-entry: For the monthly lease entries.
  • aro-computation: Restoration obligations attached to leased sites.
  • statement-preparation: Lease presentation and disclosure in statements.
  • deferred-tax: ROU/liability temporary differences.

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