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Documentation Index

Fetch the complete documentation index at: https://docs.spacebaseapp.com/llms.txt

Use this file to discover all available pages before exploring further.

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Getting Started

On the Accounting tab, you will find tabs along the top of the window starting with:
  • Leases — listing all Accounting Leases in your portfolio.
  • Asset Classes — ability to define different asset classes and policy decisions.
  • Policies — select pre-defined Accounting Policies, add notes, or add custom Additional Policies.
  • Settings — select and change existing Accounting settings.
On the Leases tab, you can apply a filter, selecting various drop-downs and multi-select options for advanced filtering. Select the Filter button to update the page. View your Accounting Leases by:
  • Needs Review — When a new Lease is published, a draft Accounting Lease will be automatically created under Needs Review. Manually created Accounting Leases will first appear under Needs Review.
  • Reviewed — When the Accounting Lease is ready for review, the user will go to Lease Actions and select Submit for approval. The Accounting Lease will now appear under the Accounting > Leases > Reviewed tab.
  • Approved — When the Accounting Lease is fully reviewed and ready to be published as an Approved lease, the user will go to Lease Actions and select Approve Lease.
For more on creating, modifying, and approving Accounting Leases, see Accounting Leases.

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Settings

  • ASC 842 Transition date: This date informs lease accounting calculations and report presentation.
  • Accounting lock date: This date is set to prevent users from creating accounting data with GL start dates on or before this date.
  • Fiscal year: These four fields set your quarter-end periods to inform lease accounting calculations and report presentation (e.g. Disclosures Report quarterly reporting).
  • Fiscal year starts before calendar year: Select this option if the fiscal year starts before the calendar year. For example, if the fiscal year starts on July 1st, when this option is checked July 1, 2023 will be the start of FY24. Otherwise July 1, 2023 will be the start of FY23.
  • Prorate lease expense: If your accounting lease starts after the 1st of the month or expires before the last day of the month, lease expense can be pro-rated by days.
  • Prorate interest expense: If your accounting lease starts after the 1st of the month or expires before the last day of the month, interest expense can be pro-rated by days. When enabled, the lease liability NPV calculation will also account for partial months.
  • Use custom conversion rate: Custom currency conversion rates will be used for accounting and reporting purposes. To upload custom conversion rates, log in to Spacebase, select the Company tab > Company Settings tab > Currency Conversion Rates. You can upload Individual (daily) Rates or Monthly Average Rates.
  • Display cash columns in GL Reconciliation report: choose whether to display the Cash and Lease Expense less Cash columns in the GL Reconciliation report.
  • Display dedicated TIA amortization schedule column: Enabling this option displays tenant improvement allowance payments in a dedicated Amortization Schedule column, titled TIA Payment.
  • Prevent negative ROU asset: In the rare case that lease incentives or other complex accounting treatments result in the calculation of a negative ROU asset, this setting prevents the ROU asset from becoming negative and instead creates a Negative ROU Other Asset or Liability balance. This setting will create new columns in the Amortization Schedule report for tracking and reconciling the balances.
  • Prevent negative current lease liability balance: In the case that lease payments are not required for the first 12 months or longer, the current lease liability calculations may show a negative (debit) balance. Use this setting to prevent a negative balance and instead show a zero current lease liability balance.
  • Current lease liability calculation method:
    • Use principal payments from amortization: Current LL for each period is the sum of principal payments less interest expense (non-interest portion of lease payment) over the next 12 months.
    • Use discounted lease payments: Current LL for each period-end is the next period’s lease payment plus the NPV of the next 11 months of lease payments.
  • Require note when reviewing or approving accounting leases: When an Accounting Lease is submitted for review or approval, the user must provide a Note in the notes field. This may be important for SOX Controls or certain change management processes.
  • Monetary (e.g. lease liability) functional currency conversion logic: Determines the FX rate date used when converting monetary entries from contract to functional currency.
  • Nonmonetary (e.g. right-of-use asset) functional currency conversion logic:
    • Layered (default): Under this approach, the change in right-of-use asset from a modification is converted using the exchange rate as of the modification effective date.
    • Single exchange rate (optional): Under this approach, the old lease is essentially “terminated” and a new lease is recognized by remeasuring the entire right-of-use asset using the exchange rate as of the modification effective date.
  • Discount Rates: Input custom discount rates which will automatically flow into applicable Accounting Lease Snapshots.

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Policies

The Policies tab defines required lease accounting policies in order to perform appropriate calculations and present reports accurately. Pre-fill the existing required sections with the ability to add additional policies at the bottom of the page. Accounting Policy elections in regard to separating Nonlease Components and recognizing Short-Term Leases are set by Asset Class.

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Asset Classes

Create custom Asset Classes (e.g. Real estate, data center, equipment, or any custom group) and provide the following for each asset class:
  • Name
  • Major part of useful life (percentage): Percentage used when evaluating whether the lease term is for the major part of the remaining economic life of the underlying asset for purposes of lease classification. This may differ due to the nature of the underlying asset.
  • Substantially all of fair market value (percentage): Percentage used when evaluating whether the present value of the lease payments amounts, including any residual value guaranteed by the lease, equals or exceeds substantially all of the fair value of the underlying asset for purposes of lease classification.
  • Exclude cash entries in custom journal entry exports: Selecting this option removes cash-based journal entries from the journal entry report.
On the Asset Classes tab there is a column that calculates the number of Leases under each Asset Class.