Lease Modifications
Test that each lease modified in the year was remeasured against the right-of-use asset, and find modifications nobody recorded.
- Ledger + lease register
How the result is read
A modification that is not a separate lease is remeasured at the revised terms and rate, and the remeasurement adjusts the right-of-use asset (IFRS 16.44–46; ASC 842-10-35 for a modification not accounted for as a separate contract). A remeasurement larger than the asset adjustment has sent the rest to profit or loss, which only a decrease in scope permits. The other half is completeness: when what a lessor is paid changes and stays changed, the lease was modified, whether or not the register says so.
In the application
Lease Modifications is filed under Fixed assets & leases, index letter F. "Run all analyses" runs it with every other analysis the ledger and the documents loaded can answer. The worksheet states the population it tested on its face — or "Not applicable" with the reason when a column it depends on is empty — and the Excel workbook the engagement exports files it under F, beside an index of the source files with their SHA-256 fingerprints.
Read it with
Run your next audit file test without the Excel crash.
One free engagement to evaluate, valid 60 days. The ledger never leaves the machine.
- 20 minutes
- Runs on a fictional engagement
- No client data required