Having the ability to break down the movements of a particular lease on a day-by-day basis allows you to provide further evidence to your auditors on the accuracy of the numbers your Journal and Disclosure reports are producing. With the revamp of our IFRS engine, we are able to provide an updated version of our much loved Daily Calculation Report. Below we will show you where to locate it and how to read this report.
Where to find the Daily Calculation Report
The Daily Calculation Report is found on the Agreement Overview page of an Agreement
Unlike the previous version of the Daily Calculation Report, there is no need to regenerate your Agreement when a change has been made - the report will automatically sync with your Agreement data. We do recommend that you wait up to 5 minutes the first time you run the report for an Agreement, and then moving forward, up to 3 minutes for the changes to flow through.
- Search for the Agreement that you wish to extract the Daily Calculation Report for
- On the Agreement Overview, scroll down to the box on the right-hand side that reads: Payments & Accounting
- Click on Download Daily Calculation Report
This will generate and download the Daily Calculation Report for your Agreement as a .csv file.
If you receive an error message when generating the Daily Calculation Report, run the Journal Report for that Agreement to view the Reporting Logs to understand what is stopping the Report from running. Check out this article for our most common error messages and their solutions.
How to read the Daily Calculation Report
As the Simplified transition approach does not take into consideration past events for the calculation of the Transition Balances of the Right of Use Asset (ROUA) and Lease Liability (LL), the report will start on your Organisation's transition date as there is no calculated balances or transactions before this date.
For Agreements that use the Modified Retrospective and Full Retrospective approach, or those Agreements which started after the transition date, the report will show the calculations from the commencement of the lease. This will provide visibility of all calculated transactions and balances throughout the life of the lease and support the calculated transition balances for the Modified Retrospective approach.
In all transition methods, the Daily Calculation Report will stop on the expiry of the last expected renewal or a surrender event, whichever comes first.
In order to run this report, once downloaded, you must click 'Enable Editing' in Excel for the formula to compute.
The Daily Calculation Report tabs
The exported report has four tabs. The information in these tabs is exported from the Nomos One database relating to the agreement and provides the information to generate the Daily Calculation Report, which is found on the fourth tab. The four tabs are as follows:
Journals
- The Journals tab is a journal list that is specific to this particular report. It is not identical to the Journal Report. This tab is used to match the Daily Calculation Report amounts to system-generated balances and transactions.
Payments
- The Payments tab shows the payment series that is active for each date of the agreement and each payment series that is calculated across the life of the lease based on completed events. It also shows the expected expiry date of the lease.
Agreement
- The Agreement tab shows the interest rate and Make Good Provision balance that is effective on each date of the Agreement.
The Daily Calculation Report
- The Daily Calculation Report tab is formula-driven and will only populate amounts when the spreadsheet performs a calculation. It is an accurate representation of the calculations that take place within the Nomos One IFRS Engine. It provides the user detail on the calculated transactions and balances across the life of the lease.
Reading the columns of the Daily Calculation Report
Columns A & B
Column A highlights certain events that took place or are scheduled to take place on the dates which are shown in Column B
Column C
Column C is the interest rate that is effective on each date for the agreement. The rate is linked to the 'Agreement' tab
Columns D
Column D is the daily discount rate calculated from the annual rate in Column C
Column E
Column E is the calculated net present value of the expected payment series that is effective as per each date and the calculated Lease Liability (LL) balance. The calculation is linked to the effective payment series in the 'Payment' tab and interest rate in Column C
Columns F & G
Column F is the lease payment that took place or is expected to take place on that date and Column G is the Lease Liability after the payments shown on that date have been made
Column H
Column H is the calculated interest expense for that date. The calculation is linked to the balance in Column G and the rate in Column D
Column I
Column I is the Lease Liability Balance after the interest expense from Column H has been added to the balance for Column G
Column J
Column J is the gross Right of Use Asset balance on each date for this agreement. It is calculated from the Lease Liability at commencement, is remeasured when events are completed, and is adjusted for the following balances/transactions:
- Make Good Provision
- Accrued Rent
- Business Combination Gain/Loss
- Direct Cost
- Impairment Expense
- Incentives
- Onerous Lease Expense
- Prepayments
- Revaluations
Please note: If you use the Modified Retrospective Transition Method the gross Right of Use Asset balance in the Daily Calculation Report may not match the amount in the Financial Statements Report. This is due to the difference in when the calculation begins (Commencement Date) and when the Journals/Reporting begins (Transition Date).
Column K
Column K is the Opening Book Value of your Right Of Use Asset on each date and is calculated using the Closing Book Value from the previous date and adjusted for any remeasurements or gains/losses on lease events that have adjusted the gross Right Of Use Asset balance in Column J
Column L
Column L is the calculated depreciation expense for each date of the agreement and is calculated using the total number of days in the agreement, which is noted in the 'Payments' tab
Column M
Column M is the running total of depreciation expense (Column L) for this agreement to the end of each date
Column N
Column N shows the Closing Book Value of the Right Of Use Asset on each date and is calculated using the Opening Book Value (Column K) less the depreciation expense incurred on that date (Column L)
Column O
Column O is the future value of the Make Good Provision relating to this agreement. It is linked to the 'Agreement' tab and links to the present value calculation of this amount (Column P) and any changes in this amount that occur (Column Q)
Column P
Column P is the present value of the Make Good Provision amount in Column O and the interest rate effective on this date in Column C
Column Q
Column Q shows any changes to the amount in Column O and is linked to any resulting remeasurements of the Right Of Use Asset
Column R
Column R is the interest expense calculated on the Make Good Provision. It is linked to the present value of the Make Good Provision and the interest rate in Column C
Columns S to AO
Columns S to AO contain other IFRS accounts such as Business Combinations and Direct Costs which will have an impact on the Right Of Use Asset and Lease Liability
Nomos One does not provide or purport to provide any accounting, financial, tax, legal or any professional advice, nor does Nomos One purport to offer a financial product or service. Nomos One is not responsible or liable for any claim, loss, damage, costs or expenses resulting from your use of or reliance on these resource materials. It is your responsibility to obtain accounting, financial, legal and taxation advice to ensure your use of the Nomos One system meets your individual requirements.