Leasing is a widely used alternative form of financing for companies. This is a contractual agreement between two parties in which one party that owns an asset (the lessor) agrees to provide the other party (the lessee) the right to use the underlying asset. In exchange for that, the lessor receives periodical payments at pre-determined dates. In this way, the lessee uses that asset and pays interest in return.

This Excel template illustrates how to account for leases by applying the IFRS 16 Right-of-Use model.

Other related topics you might be interested to explore are Non-current liabilities, Finance Lease, and Operating Lease.

This is an open-access Excel template in XLSX format that will be useful for anyone who wants to work as an Accountant, Financial Analyst, or Finance Manager.

You can now download the Excel template for free.

Lease Accounting is included in the Financial Reporting module of the CFA Level 1 Curriculum.