Capture a lease amendment before the next close

Send the accountant the original lease, all previous amendments, and the new executed change. Identify which schedule currently supports the ledger. A new document can add premises, remove equipment, change the term, revise payments, or alter options. The reviewer needs to see the cumulative contract rather than a single amendment that assumes knowledge of earlier terms.

Record the agreement date, effective date, and dates when any added asset or space becomes available. These dates can differ. Ask the operating owner to confirm what changed in practice and whether any conditions remain outstanding. Keep unsigned proposals separate so they do not inadvertently become inputs to an approved accounting calculation.

Create a comparison that identifies the old term, new term, source clause, and responsible owner. Include payment timing, variable charges, incentives, renewal options, termination rights, and the assets covered where relevant. The table should guide review of the actual documents rather than replace them.

IFRS 16 addresses recognition, measurement, and presentation of lease assets and liabilities. A modification therefore needs assessment under the applicable lease guidance, rather than an automatic update of the payment amount. Other reporting frameworks can differ, so obtain the accountant's classification and calculation requirements before editing the ledger schedule.

Begin with the accepted lease asset, liability, and related balances immediately before the approved change. Preserve the existing calculation and show the proposed revised calculation separately. Have the accountant identify the journal effects, required assumptions, and reporting period. A revised schedule that starts from zero can lose the relationship to amounts already recorded.

For a hypothetical amendment adding twelve payments of $6,000, the additional contractual payments total $72,000. That total is an input, not necessarily the amount of the accounting adjustment. The reviewer may need other terms and measurement assumptions. Keep the distinction visible so an operational payment spreadsheet is not mistaken for a completed lease-accounting model.

Check whether the amendment changes current and noncurrent portions, cash-flow classifications, or note disclosures. Give those report owners the approved result and schedule version. If the amendment affects several entities or locations, retain the allocation evidence and identify which entity has the contractual obligation. Do not distribute the total based solely on who occupies the space today.

Update recurring entries, supporting registers, and payment instructions through their authorized owners. Inspect the first posting after the amendment and compare it with the approved schedule. Look for both an unchanged old entry and a new replacement, which can duplicate the adjustment. Confirm that future scheduled drafts do not continue to use superseded terms.

Retain the amendment packet, accounting conclusion, revised calculation, posting evidence, and disclosure updates. Record the next event requiring reassessment, such as an option deadline or completion condition. The next close should begin from an accepted amended schedule with a traceable bridge from the previous one, rather than a payment amount someone changed without documenting the accounting effect.