Sign the lease. Aleq books the rest.
The right-of-use asset, the lease liability, and every period after — read off the signed agreement and kept current on your balance sheet.
From a classified lease to a booked entry.
Your team runs the classification test; Aleq takes it from there — present value, the commencement entry, and every period after. Below is how it ran on the lease at 535 Mission.
Worked example · 535 Mission · L-001operating · ROU $1.84M · posted
It stays current without a touch.
Each period the liability accretes interest at your discount rate, the payment pays it down, and the right-of-use asset amortizes alongside. Aleq rolls the schedule forward and books the entry — opening balance to closing — so the balance sheet is already right when you open it.
The schedule is mechanical. The judgments aren't.
Operating or finance, which discount rate, whether a lease qualifies for the short-term exemption — three moments in a lease's life, and one thing that isn't built yet.
Give Aleq the classification and the discount rate — implicit where determinable, otherwise your incremental borrowing rate — and it computes the present value, books the commencement entry, and runs the amortization schedule every period from there.
- Run the 5-criteria test (ownership transfer, purchase option, term vs. economic life, PV vs. fair value, specialized use)
- Confirm the discount rate — implicit rate or your incremental borrowing rate
- Aleq takes it from there: PV, ROU asset, liability, and the full amortization schedule
The leases you actually carry.
Real estate or equipment, operating or finance — the same engine classifies and schedules whatever sits on your books.
Mostly real estate — and the leases hiding in your cloud bill.
Headquarters and regional offices are the obvious ones. But reserved data-center capacity and colocation racks can be embedded leases under ASC 842 — your team assesses the commitment for the right to control an identified asset, and Aleq schedules whatever you classify.
- HQ & satellite offices operating leases, escalators and free-rent periods handled.
- Colocation & reserved capacity flagged for an embedded-lease assessment before it's expensed.
- Short coworking space short-term exemption applied, expensed straight-line.
Equipment and fleet — where finance leases actually show up.
Production equipment, tooling, and vehicle fleets often transfer substantially all of an asset's economic life. Your team runs the ASC 842-10-25 classification; Aleq computes the present value and schedules finance versus operating from there.
- Production equipment finance lease — ROU amortized, interest accreted separately.
- Vehicle fleet operating, with a per-VIN schedule rolled up to the GL.
- Warehouse space operating, with renewal options weighed into the term.
Plant and heavy machinery — long terms, real interest.
Buildings, presses, and line equipment carry multi-year terms that frequently clear the 75%-of-life and 90%-of-fair-value tests. Once classified, Aleq accretes interest on the liability and keeps the rollforward audit-ready.
- Plant & buildings finance leases where the term covers most of the useful life.
- Line equipment & presses PV tested against fair value at the discount rate.
- Forklifts & material handling operating, batched into one tidy schedule.
Imaging equipment and clinic space — plus the embedded ones.
MRI and imaging suites are usually finance leases; clinic and lab space is operating. Managed-equipment service contracts often bury a lease inside them — your team separates the lease component from the service, and Aleq books each correctly from there.
- Imaging & diagnostic equipment finance leases, depreciated and accreted apart.
- Clinic & lab space operating, with options and escalators modeled.
- Managed-equipment contracts lease component split from the service component.
Fulfillment footprint and the fleet that moves it.
Warehouse and sortation space scales with volume, and last-mile fleets turn over fast. Aleq keeps every site and vehicle on its own schedule as new leases come on — and when the footprint changes, the affected lease is remeasured — the delta posts and its schedule regenerates.
- Fulfillment & sortation space operating, each new site scheduled from signing.
- Last-mile vehicle fleet operating, per-vehicle schedules rolled up.
- Material-handling equipment classified per unit, finance where it qualifies.
For services firms, it's all office space.
For services firms the lease portfolio is offices and the equipment in them. Aleq carries each suite as an operating lease, applies the short-term exemption where you've elected it, and keeps the disclosure rollforward ready.
- Office suites operating, free-rent and escalators straight-lined.
- Parking & storage folded into the related office schedule.
- Copiers & office equipment short-term exemption applied where elected.
What controllers and auditors ask.
The lease liability equals the present value of the remaining lease payments over the lease term, discounted at the rate implicit in the lease where determinable, and otherwise at your incremental borrowing rate. Fixed payments and contractual escalators are included. After commencement, the liability accretes interest at the discount rate each period and is reduced by the payment made. On a $38,500-per-month, 60-month office lease at 7.0%, the present value is approximately $1.79 million. Aleq computes the present value from the signed lease once you confirm the discount rate, then rolls the liability forward each period automatically.
Put one lease on Aleq.
Classify one lease and confirm the discount rate. Watch Aleq book the right-of-use asset and liability, amortize both every period, and keep the rollforward and disclosures tied out — no schedule to build by hand.