1 Periodical Amortization
2 Daily Amortization
3 Daily Compounding Rate
4 Present Value Formula
5 Proration Method
6 Interest Calculation Formula
7 Lease Expense
8 IFRS16 Amortization
9 ASC842 Amortization
Spread IFRS16 Amortization expense and Lease Expense under USGAAP
Spread IFRS16 Amortization expense and Lease Expense under USGAAP
Present Values and Interest calculations use 'Daily Compounding Intere
Cash Amount X(1+Daily Compounding Rate)^-(n), where n= number of
Days/Month; works on actual days in a month; 360 days=assumes all pe
Liability Outstanding X (1+DC)^(n)-Liability Outstanding. N= number of d
Spreading total of Cash Flows from a payment over days in a lease or p
Spreading IFRS16 Right of Use from a payment over days in a lease or p
Lease Expense minus Interest Expense for a Period
 ease Expense under USGAAP, for all full periods equally, and partial periods partially,irrespective of number of days in each of
ease Expense under USGAAP, for the respective months based on a 'Daily' rate which again depends on number of days in a pe
e 'Daily Compounding Interest'. Annual discount Rate is converted to 'Daily' Compounding Interest using the formula= (1+R/10
e)^-(n), where n= number of days a cash item falls from the starting point…like Amortization Start Date or Amendment Comme
nth; 360 days=assumes all periods to have 30 days and 360 days in a year
Outstanding. N= number of days till end of the period or next Liability change date. Liability changes when a payment is applie
ment over days in a lease or periods in a Lease as per the Proration Rule
ment over days in a lease or periods in a Lease as per the Proration Rule
tive of number of days in each of the month
epends on number of days in a period.
erest using the formula= (1+R/100)^(1/365 or 1/360)-1
tart Date or Amendment Commencement Date

hanges when a payment is applied to the Liability balance.

Scenario

Lease Start Date 1-Jan-20 Lease End Date 31-Dec-20

Lease Lease
Amortization Amortization End
Start Date 1-Jan-20 Date 31-Dec-20

Cash Flows Dates No. of Days Discount Rate Amount

5-Jan-20 5 0.0001355374182 1000
5-Feb-20 35 0.0001355374182 1000
5-Mar-20 65 0.0001355374182 1000
5-Apr-20 95 0.0001355374182 1000
5-May-20 125 0.0001355374182 1000
5-Jun-20 155 0.0001355374182 1000
5-Jul-20 185 0.0001355374182 1500
5-Aug-20 215 0.0001355374182 1500
5-Sep-20 245 0.0001355374182 1500
5-Oct-20 275 0.0001355374182 1500
5-Nov-20 305 0.0001355374182 1500
5-Dec-20 335 0.0001355374182 1500

Total 15000
 Discount Rates

Discount Rate 5% p.a

(converted to 'Daily'
Compounding Rate using
Daily Compounding formula mentioned in
Interest(365 Day) 0.000133681 Definitions)

(converted to 'Daily'
Compounding Rate using
Daily Compounding formula mentioned in
Interest(360 Day) 0.000135537 Definitions)

PV Lease Expense Liability Beginning

999.322588377904 1250 14624.0367818456
995.267744389391 1250 13680.2229656087
991.229353306035 1250 12732.5639350557
987.207348368654 1250 11781.0440243076
983.201663088941 1250 10825.6475036605
979.212231248373 1250 9866.35857932577
1462.85848034567 1250 8903.16139316905
1456.92279652939 1250 7434.34304629649
1451.01119730013 1250 5959.54055166308
1445.12358493245 1250 4478.7295291101
1439.25986209743 1250 2991.88549915105
1433.41993186108 1250 1498.98388256697

14624.0367818456

Using Lease
Using Present Value Expense
formula mentioned in formula from
Definitions Definitions
Amortization Method Payment Info

Periodical Pay Date 5th of every month

Payments 1000 Line 1

Payments 1500 Line 2

Frequency Monthly
Proration Convention 360

Principal(after
Interest 1 Payment payment) Interest 2
9.91320780015485 1000 13633.9499896458 46.2729759629365
9.27342395492815 1000 12689.4963895636 43.0675454920965
8.63103355112617 1000 11741.1949686068 39.849055700739
7.98602596929595 1000 10789.0300502769 36.6174533835911
7.33839054673808 1000 9832.9858942072 33.3726851185656
6.68811657730112 1000 8873.04669590307 30.1146972659808
6.0351933112197 1500 7409.19658648027 25.146459816222
5.0395242144823 1500 5939.38257051097 20.1579811521069
4.03979863859786 1500 4463.58035030168 15.1491788084222
3.03600005696717 1500 2981.76552916707 10.1199699839808
2.02811187566112 1500 1493.91361102671 5.07027154025559
1.01611743314402 1500 0 0

71.0249439295999 15000 304.938274224826

Using Interest
calculation formula
from Definitions
 ASC842(Operating
Period End Principal IFRS16 Amortization IFRS16 ROU Leases) Amortization
13680.2229656087 1218.66973182047 13405.3670500251 1193.81381623691
12732.5639350557 1218.66973182047 12186.6973182047 1197.65903055298
11781.0440243076 1218.66973182047 10968.0275863842 1201.51991074814
10825.6475036605 1218.66973182047 9749.35785456374 1205.39652064711
9866.35857932577 1218.66973182047 8530.68812274327 1209.2889243347
8903.16139316905 1218.66973182047 7312.0183909228 1213.19718615672
7434.34304629649 1218.66973182047 6093.34865910234 1218.81834687256
5959.54055166308 1218.66973182047 4874.67892728187 1224.80249463341
4478.7295291101 1218.66973182047 3656.0091954614 1230.81102255298
2991.88549915105 1218.66973182047 2437.33946364093 1236.84402995905
1498.98388256697 1218.66973182047 1218.66973182047 1242.90161658408
0 1218.66973182047 0 1248.98388256686

Using IFRS16 Using ASC842

Amortization formula Amortization formula
 ASC842 ROU
13430.2229656087
12232.5639350557
11031.0440243076
9825.64750366047
8616.35857932577
7403.16139316905
6184.3430462965
4959.54055166308
3728.7295291101
2491.88549915105
1248.98388256697
0
Scenario

Lease Start Date 1-Jan-20 Lease End Date

Lease Lease
Amortization Amortization End
Start Date 1-Jan-20 Date

Period End
Dates Cash Flows No. of Days Discount Rate
31-Jan-20 5-Jan-20 31 5 0.0001355374182
29-Feb-20 5-Feb-20 29 36 0.0001355374182
31-Mar-20 5-Mar-20 31 65 0.0001355374182
30-Apr-20 5-Apr-20 30 96 0.0001355374182
31-May-20 5-May-20 31 126 0.0001355374182
30-Jun-20 5-Jun-20 30 157 0.0001355374182
31-Jul-20 5-Jul-20 31 187 0.0001355374182
31-Aug-20 5-Aug-20 31 218 0.0001355374182
30-Sep-20 5-Sep-20 30 249 0.0001355374182
31-Oct-20 5-Oct-20 31 279 0.0001355374182
30-Nov-20 5-Nov-20 30 310 0.0001355374182
31-Dec-20 5-Dec-20 31 340 0.0001355374182

366 Total
 Discount Rates

31-Dec-20 Discount Rate 5% p.a

Daily Compounding
31-Dec-20 Interest(365 Day) 0.000133681
Daily Compounding
Interest(360 Day) 0.000135537

Amount PV Lease Expense

1000 999.322588377904 1270.49180327869
1000 995.13286664991 1188.52459016393
1000 991.229353306035 1270.49180327869
1000 987.073562966386 1229.50819672131
1000 983.068420533338 1270.49180327869
1000 978.946845408831 1229.50819672131
1500 1462.46201682781 1270.49180327869
1500 1456.33055441563 1270.49180327869
1500 1450.22479853866 1229.50819672131
1500 1444.34037705681 1270.49180327869
1500 1438.28489073962 1229.50819672131
1500 1432.44891653989 1270.49180327869

15000 14618.865191361 15000

 Amortization Method Payment Info

Daily Pay Date 5th of every month

Payments 1000

Payments 1500
Frequency Monthly
Proration Convention Days/Month

Principal(after
Liability Beginning Interest 1 Payment payment)
14618.865191361 9.90970212987304 1000 13628.7748934909
13676.8837837253 9.27116042097077 1000 12686.1549441463
12727.4860983264 8.62759143378025 1000 11736.1136897602
11777.5415810925 7.98365176524385 1000 10785.5252328577
10822.1307910581 7.33600666988423 1000 9829.46679772802
9864.1643213815 6.68662915386994 1000 8870.85095053537
8900.95819554631 6.0336998278417 1500 7406.99189537415
7433.13820440388 5.03870748732152 1500 5938.1769118912
5959.13837786885 4.0395260167179 1500 4463.17790388556
4478.32571681004 3.03572632439227 1500 2981.36144313444
2991.88549915105 2.02811187566112 1500 1493.91361102671
1498.98388256697 1.01611743314402 1500 0

71.0066305386795 15000
Line 1

Line 2

Interest 2 Period End Principal IFRS16 Amortization IFRS16 ROU

48.1088902344181 13676.8837837253 1238.20989325735 13380.6552981036
41.331154180185 12727.4860983264 1158.32538401494 12222.3299140887
41.4278913322723 11777.5415810925 1238.20989325735 10984.1200208313
36.6055582004392 10822.1307910581 1198.26763863615 9785.8523821952
34.6975236534854 9864.1643213815 1238.20989325735 8547.64248893784
30.1072450109332 8900.95819554631 1198.26763863615 7349.3748503017
26.1463090297357 7433.13820440388 1238.20989325735 6111.16495704435
20.9614659776407 5959.13837786885 1238.20989325735 4872.955063787
15.1478129244815 4478.32571681004 1198.26763863615 3674.68742515085
10.5240560166148 2991.88549915105 1238.20989325735 2436.4775318935
5.07027154025559 1498.98388256697 1198.26763863615 1238.20989325735
0 0 1238.20989325735 0

310.128178100356 14618.865191361
 ASC842(Operating
Leases) Amortization ASC842 ROU
1212.4732109144 13406.3919804466
1137.9222755628 12268.4697048838
1220.43632051264 11048.0333843712
1184.91898675563 9863.11439761553
1228.45827295532 8634.65612466021
1192.71432255651 7441.9418021037
1238.31179442111 6203.63000768259
1244.49162981373 4959.13837786887
1210.32085778011 3748.81752008875
1256.93202093768 2491.88549915107
1222.40981330539 1269.47568584568
1269.47568584554 0