Quick Tips: Revisions

Things Change, So Can Your Leases

Over the course of your existing leases, there are elements that may change. Perhaps you extend or terminate your lease, or alternatively, you are adding square footage to your office spaces. No matter what the change, LeaseCrunch allows for modifications within existing leases. 

Changes Happen, Make them in LeaseCrunch

Adding a Revision to a lease is how you amend, modify, remeasure, or change a lease at a date before the end of the lease term.

Examples of revisions:

• Modification: Amendment to a lease including a lease termination prior to the lease end date.
• Remeasurement: Reassess the lease due to an event (lease term change)
• Impairment of Asset: Lessee reduces ROU Asset to zero

Tips on Revising a Lease

To revise a lease, you'll navigate to “Edit Lease” (blue pencil from My Leases) and then click “Add Revision” at the top right.

The software will freeze the original version of the lease and allow you to change the parameters of the newly revised lease. The modified lease payments will adjust the lease liability and corresponding lease asset adjustment.

Please Note: If the revision's adjustment of the lease liability causes the carrying amount of the asset to be reduced to $0, then any remaining amount will be recorded in a Gain/Loss Account.

To see a revision in action, check out the How-to Video, available in The Knowledge Base.