Sample Lease 1

Lease denominated in USD

Plan Ethiopia (Functional Currency ETB) Workings for US GAAP Amorti
Undiscounted payments
Start date 6/1/2019 Remaining term at 1/7/19
End date 5/31/2025 Constant monthly lease expense

Monthly payments of USD 1500

IBR 5% 0.42%
Fully retrospective (i.e. treat as a new lease from Plan's ASC 842 adoption date of 1/7/19)

Payment Schedule (rows prior to 1/7/22 hidden) ROUA (USD)

Time Date Payment Discount factor NPV Sum of NPV Date Opening
36 7/1/2022 1500 0.86 1291.46 7/1/2022 48,960.24
37 8/1/2022 1500 0.86 1286.11 8/1/2022 47,657.99
38 9/1/2022 1500 0.85 1280.77 9/1/2022 46,350.32
39 10/1/2022 1500 0.85 1275.45 10/1/2022 45,037.19
40 11/1/2022 1500 0.85 1270.16 11/1/2022 43,718.60
41 12/1/2022 1500 0.84 1264.89 12/1/2022 42,394.51
42 1/1/2023 1500 0.84 1259.64 1/1/2023 41,064.90
43 2/1/2023 1500 0.84 1254.42 2/1/2023 39,729.76
44 3/1/2023 1500 0.83 1249.21 3/1/2023 38,389.05
45 4/1/2023 1500 0.83 1244.03 4/1/2023 37,042.75
46 5/1/2023 1500 0.83 1238.87 5/1/2023 35,690.85
47 6/1/2023 1500 0.82 1233.73 6/1/2023 34,333.31
48 7/1/2023 1500 0.82 1228.61 7/1/2023 32,970.11
49 8/1/2023 1500 0.82 1223.51 8/1/2023 31,601.24
50 9/1/2023 1500 0.81 1218.43 9/1/2023 30,226.66
51 10/1/2023 1500 0.81 1213.38 10/1/2023 28,846.36
52 11/1/2023 1500 0.81 1208.34 11/1/2023 27,460.30
53 12/1/2023 1500 0.80 1203.33 12/1/2023 26,068.47
54 1/1/2024 1500 0.80 1198.33 1/1/2024 24,670.84
55 2/1/2024 1500 0.80 1193.36 2/1/2024 23,267.38
56 3/1/2024 1500 0.79 1188.41 3/1/2024 21,858.08
57 4/1/2024 1500 0.79 1183.48 4/1/2024 20,442.90
58 5/1/2024 1500 0.79 1178.57 5/1/2024 19,021.83
59 6/1/2024 1500 0.78 1173.68 6/1/2024 17,594.84
60 7/1/2024 1500 0.78 1168.81 7/1/2024 16,161.90
61 8/1/2024 1500 0.78 1163.96 8/1/2024 14,722.99
62 9/1/2024 1500 0.77 1159.13 9/1/2024 13,278.09
63 10/1/2024 1500 0.77 1154.32 10/1/2024 11,827.16
64 11/1/2024 1500 0.77 1149.53 11/1/2024 10,370.19
65 12/1/2024 1500 0.76 1144.76 12/1/2024 8,907.15
66 1/1/2025 1500 0.76 1140.01 1/1/2025 7,438.02
67 2/1/2025 1500 0.76 1135.28 2/1/2025 5,962.76
68 3/1/2025 1500 0.75 1130.57 3/1/2025 4,481.35
69 4/1/2025 1500 0.75 1125.88 4/1/2025 2,993.78
70 5/1/2025 1500 0.75 1121.21 5/1/2025 1,500.00
 rkings for US GAAP Amortisation
discounted payments 106500
maining term at 1/7/19 71 months
nstant monthly lease expense 1500 Relevant exchange rates
USD/ETB at 1/7/19
USD ETB at 1/7/22
USD ETB at 1/7/23
USD ETB at 1/7/24
USD / ETB Ave FY2
LL (USD) USD / ETB Ave FY2
Amortisation Closing Opening Payment Interest Closing Summary Balances
- 1,302.25 47,657.99 48,960.24 -1500 197.75 47,657.99
- 1,307.68 46,350.32 47,657.99 -1500 192.32 46,350.32 ROUA at 1/7/22
- 1,313.12 45,037.19 46,350.32 -1500 186.88 45,037.19 FY23 Amortisation
- 1,318.60 43,718.60 45,037.19 -1500 181.40 43,718.60 ROUA at 30/6/23
- 1,324.09 42,394.51 43,718.60 -1500 175.91 42,394.51 FY24 Amortisation
- 1,329.61 41,064.90 42,394.51 -1500 170.39 41,064.90 ROUA at 30/6/24
- 1,335.15 39,729.76 41,064.90 -1500 164.85 39,729.76
- 1,340.71 38,389.05 39,729.76 -1500 159.29 38,389.05
- 1,346.30 37,042.75 38,389.05 -1500 153.70 37,042.75
- 1,351.91 35,690.85 37,042.75 -1500 148.09 35,690.85 LL at 1/7/22
- 1,357.54 34,333.31 35,690.85 -1500 142.46 34,333.31 FY23 Payments
- 1,363.19 32,970.11 34,333.31 -1500 136.81 32,970.11 FY23 Interest
- 1,368.87 31,601.24 32,970.11 -1500 131.13 31,601.24 LL at 30/6/23
- 1,374.58 30,226.66 31,601.24 -1500 125.42 30,226.66 FY24 Payments
- 1,380.31 28,846.36 30,226.66 -1500 119.69 28,846.36 FY24 Interest
- 1,386.06 27,460.30 28,846.36 -1500 113.94 27,460.30 LL at 30/6/24
- 1,391.83 26,068.47 27,460.30 -1500 108.17 26,068.47
- 1,397.63 24,670.84 26,068.47 -1500 102.37 24,670.84
- 1,403.45 23,267.38 24,670.84 -1500 96.55 23,267.38
- 1,409.30 21,858.08 23,267.38 -1500 90.70 21,858.08
- 1,415.17 20,442.90 21,858.08 -1500 84.83 20,442.90
- 1,421.07 19,021.83 20,442.90 -1500 78.93 19,021.83
- 1,426.99 17,594.84 19,021.83 -1500 73.01 17,594.84
- 1,432.94 16,161.90 17,594.84 -1500 67.06 16,161.90
- 1,438.91 14,722.99 16,161.90 -1500 61.09 14,722.99
- 1,444.90 13,278.09 14,722.99 -1500 55.10 13,278.09
- 1,450.92 11,827.16 13,278.09 -1500 49.08 11,827.16
- 1,456.97 10,370.19 11,827.16 -1500 43.03 10,370.19
- 1,463.04 8,907.15 10,370.19 -1500 36.96 8,907.15
- 1,469.14 7,438.02 8,907.15 -1500 30.86 7,438.02
- 1,475.26 5,962.76 7,438.02 -1500 24.74 5,962.76
- 1,481.41 4,481.35 5,962.76 -1500 18.59 4,481.35
- 1,487.58 2,993.78 4,481.35 -1500 12.42 2,993.78
- 1,493.78 1,500.00 2,993.78 -1500 6.22 1,500.00
- 1,500.00 - 0.00 1,500.00 -1500 - 0.00 - 0.00
Relevant exchange rates
USD/ETB at 1/7/19 28.887
USD ETB at 1/7/22 52.809
USD ETB at 1/7/23 54.855
USD ETB at 1/7/24 56.214
USD / ETB Ave FY2 53.832
USD / ETB Ave FY2 55.534 "SHOULD BE" CALCULATIONS BY SYSTEM
Summary Balances A) ROUA
USD (LC) ETB (FC) USD (RC) 1) FX gain or loss in ETB
ROUA at 1/7/22 48,960 1,414,315 26,781.69 None, because NM ROUA not revalued
FY23 Amortisation - 15,990 - 461,907 - 8,580.52 2) CTA on translation of ETB FC bals to USD
ROUA at 30/6/23 32,970 952,408 17,362.28 FY23
FY24 Amortisation - 16,808 - 485,539 - 8,743.01 Opening ROUA 26,781.69
ROUA at 30/6/24 16,162 466,869 8,305.21 Less Amort - 8,580.52
CTA gain / (loss) - 838.89
Closing 17,362.28
B) LEASE LIABILITY
LL at 1/7/22 48,960 2,585,541 48,960 1) FX gain or loss in ETB
FY23 Payments - 18,000 - 968,976 - 18,000 FY23
FY23 Interest 2,010 108,195 2,010 Opening LL 2,585,541
LL at 30/6/23 32,970 1,808,576 32,970 Payments - 968,976
FY24 Payments - 18,000 - 999,621 - 18,000 Interest 108,195
FY24 Interest 1,192 66,185 1,191.79 FX( Gain) / loss 83,815
LL at 30/6/24 16,162 908,525 16,162 Closing LL 1,808,576

USD FX (gain) / loss 1,556.97

USD CTA gain /(loss) - 838.89

TOTAL USD loss - 2,395.86

ULATIONS BY SYSTEM PROPOSED CALCULATIONS BY SYSTEM

Because lease currency = functional / local currency of "lease

A not revalued i) There will be no FX gain / loss on revaluation of the monet
f ETB FC bals to USD ii) There will be no CTA calculated on the conversion from F
FY24
17,362.28
- 8,743.01
- 314.06
8,305.21

2) CTA on translation to USD

FY24 FY23 FY24
1,808,576 Opening LL 48,960 32,970
- 999,621 Payments - 18,000 - 18,000
66,185 Interest 2,010 1,192
33,385 CTA gain / (loss - -
908,525 Closing LL 32,970 16,162

601.16 Loss on revaluation of liability - USD strengthening against ETB over time (need more ETB to settle USD bal
- 314.06 Loss on conversion of ETB asset to USD for reporting as translated into ETB at historic rate, when ETB was s

- 915.22
NS BY SYSTEM

ional / local currency of "lease" entity and reporting currency:

ss on revaluation of the monetary lease liability
ated on the conversion from FC to RC

ed more ETB to settle USD balance)

historic rate, when ETB was stronger, but translated back to USD at current rate (ETB weaker)
Sample Lease 2
Lease denominated in PEN
Plan Peru (Functional Currency PEN) Workings for US GAAP Amorti
Undiscounted payments
Start date 6/1/2019 Remaining term at 1/7/19
End date 5/31/2025 Constant monthly lease expense

Monthly payments of PEN 1500

IBR 5% 0.42%
Fully retrospective (i.e. treat as a new lease from Plan's ASC 842 adoption date of 1/7/19)

Payment Schedule (rows prior to 1/7/22 hidden) ROUA (PEN)

Time Date Payment Discount factor NPV Sum of NPV Date Opening
36 7/1/2022 1500 0.86 1291.46 7/1/2022 48,960.24
37 8/1/2022 1500 0.86 1286.11 8/1/2022 47,657.99
38 9/1/2022 1500 0.85 1280.77 9/1/2022 46,350.32
39 10/1/2022 1500 0.85 1275.45 10/1/2022 45,037.19
40 11/1/2022 1500 0.85 1270.16 11/1/2022 43,718.60
41 12/1/2022 1500 0.84 1264.89 12/1/2022 42,394.51
42 1/1/2023 1500 0.84 1259.64 1/1/2023 41,064.90
43 2/1/2023 1500 0.84 1254.42 2/1/2023 39,729.76
44 3/1/2023 1500 0.83 1249.21 3/1/2023 38,389.05
45 4/1/2023 1500 0.83 1244.03 4/1/2023 37,042.75
46 5/1/2023 1500 0.83 1238.87 5/1/2023 35,690.85
47 6/1/2023 1500 0.82 1233.73 6/1/2023 34,333.31
48 7/1/2023 1500 0.82 1228.61 7/1/2023 32,970.11
49 8/1/2023 1500 0.82 1223.51 8/1/2023 31,601.24
50 9/1/2023 1500 0.81 1218.43 9/1/2023 30,226.66
51 10/1/2023 1500 0.81 1213.38 10/1/2023 28,846.36
52 11/1/2023 1500 0.81 1208.34 11/1/2023 27,460.30
53 12/1/2023 1500 0.80 1203.33 12/1/2023 26,068.47
54 1/1/2024 1500 0.80 1198.33 1/1/2024 24,670.84
55 2/1/2024 1500 0.80 1193.36 2/1/2024 23,267.38
56 3/1/2024 1500 0.79 1188.41 3/1/2024 21,858.08
57 4/1/2024 1500 0.79 1183.48 4/1/2024 20,442.90
58 5/1/2024 1500 0.79 1178.57 5/1/2024 19,021.83
59 6/1/2024 1500 0.78 1173.68 6/1/2024 17,594.84
60 7/1/2024 1500 0.78 1168.81 7/1/2024 16,161.90
61 8/1/2024 1500 0.78 1163.96 8/1/2024 14,722.99
62 9/1/2024 1500 0.77 1159.13 9/1/2024 13,278.09
63 10/1/2024 1500 0.77 1154.32 10/1/2024 11,827.16
64 11/1/2024 1500 0.77 1149.53 11/1/2024 10,370.19
65 12/1/2024 1500 0.76 1144.76 12/1/2024 8,907.15
66 1/1/2025 1500 0.76 1140.01 1/1/2025 7,438.02
67 2/1/2025 1500 0.76 1135.28 2/1/2025 5,962.76
68 3/1/2025 1500 0.75 1130.57 3/1/2025 4,481.35
69 4/1/2025 1500 0.75 1125.88 4/1/2025 2,993.78
70 5/1/2025 1500 0.75 1121.21 5/1/2025 1,500.00
 rkings for US GAAP Amortisation
discounted payments 106500
maining term at 1/7/19 71 months
nstant monthly lease expense 1500 Relevant exchange rates
USD/PEN at 1/7/19
USD PEN at 1/7/22
USD PEN at 1/7/23
USD PEN at 1/7/24
USD / PEN Ave FY2
LL (PEN) USD / PEN Ave FY2
Amortisation Closing Opening Payment Interest Closing Summary Balances
- 1,302.25 47,657.99 48,960.24 -1500 197.75 47,657.99
- 1,307.68 46,350.32 47,657.99 -1500 192.32 46,350.32 ROUA at 1/7/22
- 1,313.12 45,037.19 46,350.32 -1500 186.88 45,037.19 FY23 Amortisation
- 1,318.60 43,718.60 45,037.19 -1500 181.40 43,718.60 ROUA at 30/6/23
- 1,324.09 42,394.51 43,718.60 -1500 175.91 42,394.51 FY24 Amortisation
- 1,329.61 41,064.90 42,394.51 -1500 170.39 41,064.90 ROUA at 30/6/24
- 1,335.15 39,729.76 41,064.90 -1500 164.85 39,729.76
- 1,340.71 38,389.05 39,729.76 -1500 159.29 38,389.05
- 1,346.30 37,042.75 38,389.05 -1500 153.70 37,042.75 LL at 1/7/22
- 1,351.91 35,690.85 37,042.75 -1500 148.09 35,690.85 FY23 Payments
- 1,357.54 34,333.31 35,690.85 -1500 142.46 34,333.31 FY23 Interest
- 1,363.19 32,970.11 34,333.31 -1500 136.81 32,970.11 LL at 30/6/23
- 1,368.87 31,601.24 32,970.11 -1500 131.13 31,601.24 FY24 Payments
- 1,374.58 30,226.66 31,601.24 -1500 125.42 30,226.66 FY24 Interest
- 1,380.31 28,846.36 30,226.66 -1500 119.69 28,846.36 LL at 30/6/24
- 1,386.06 27,460.30 28,846.36 -1500 113.94 27,460.30
- 1,391.83 26,068.47 27,460.30 -1500 108.17 26,068.47
- 1,397.63 24,670.84 26,068.47 -1500 102.37 24,670.84
- 1,403.45 23,267.38 24,670.84 -1500 96.55 23,267.38
- 1,409.30 21,858.08 23,267.38 -1500 90.70 21,858.08
- 1,415.17 20,442.90 21,858.08 -1500 84.83 20,442.90
- 1,421.07 19,021.83 20,442.90 -1500 78.93 19,021.83
- 1,426.99 17,594.84 19,021.83 -1500 73.01 17,594.84
- 1,432.94 16,161.90 17,594.84 -1500 67.06 16,161.90
- 1,438.91 14,722.99 16,161.90 -1500 61.09 14,722.99
- 1,444.90 13,278.09 14,722.99 -1500 55.10 13,278.09
- 1,450.92 11,827.16 13,278.09 -1500 49.08 11,827.16
- 1,456.97 10,370.19 11,827.16 -1500 43.03 10,370.19
- 1,463.04 8,907.15 10,370.19 -1500 36.96 8,907.15
- 1,469.14 7,438.02 8,907.15 -1500 30.86 7,438.02
- 1,475.26 5,962.76 7,438.02 -1500 24.74 5,962.76
- 1,481.41 4,481.35 5,962.76 -1500 18.59 4,481.35
- 1,487.58 2,993.78 4,481.35 -1500 12.42 2,993.78
- 1,493.78 1,500.00 2,993.78 -1500 6.22 1,500.00
- 1,500.00 - 0.00 1,500.00 -1500 - 0.00 - 0.00
Relevant exchange rates
USD/PEN at 1/7/19 3.301
USD PEN at 1/7/22 3.783
USD PEN at 1/7/23 3.628
USD PEN at 1/7/24 3.594
USD / PEN Ave FY2 3.706
USD / PEN Ave FY2 3.611 "SHOULD BE" CALCULATIONS BY SYSTEM (conversion of BS at cl ra
Summary Balances A) ROUA
PEN (LC+FC) USD (RC) CTA on translation of ETB FC bals to USD
ROUA at 1/7/22 48,960 12,942 FY23
FY23 Amortisation - 15,990 - 4,315 Opening ROUA 12,942.17
ROUA at 30/6/23 32,970 9,088 Less Amort - 4,315.24
FY24 Amortisation - 16,808 - 4,655 CTA gain / (loss) 461
ROUA at 30/6/24 16,162 4,497 Closing 9,087.68

B) LEASE LIABILITY
LL at 1/7/22 48,960 12,942 2) CTA on translation to USD
FY23 Payments - 18,000 - 4,858 FY23
FY23 Interest 2,010 542 Opening LL 12,942
LL at 30/6/23 32,970 9,088 Payments - 4,858
FY24 Payments - 18,000 - 4,985 Interest 542
FY24 Interest 1,192 330 CTA gain / (loss) 461
LL at 30/6/24 16,162 4,497 Closing LL 9,088

USD CTA (gain) / loss on ROUA 461

USD CTA gain /(loss) on LL 461

TOTAL USD loss -

BY SYSTEM (conversion of BS at cl rates / P&L at average) PROPOSED CALCULATIONS BY SYSTEM
Q Will we have asset / liability balances and P&L expense b
i) SAP will assume the lease is a foreign currency lease (as FC o
FY24 ii) Asset and related amortisation will be translated to USD using
9,087.68 iii) LL will be revalued at closing rates, with an FX gain / loss (w
- 4,654.73 iv) Interest and payments will be translated at monthly rates
64
4,496.91

FY24
9,088
- 4,985
330
64
4,497

64
Equal and opposite gain / loss on asset /
64 liability as simple US GAAP example (no
mods / opening differences between ROUA
- and LL)
NS BY SYSTEM
balances and P&L expense by document currency / Lease currency? OR can a report be written to derive?
foreign currency lease (as FC of entity = USD and lease is in PEN)
will be translated to USD using historic rates USD values will not be correct - as long as we know historic rate used
ates, with an FX gain / loss (which should be ignored) USD value of liability should be correct but FX gain / loss will be wro
anslated at monthly rates USD value should be correct
as we know historic rate used, USD system calculated values and average closing / rates we can adjust BUT may be issues on amort
but FX gain / loss will be wrong?
BUT may be issues on amortisation for assets starting / ending in year - ignore?
1) Lease currency to Functional currency

A) At lease start date:

Lease currency asset and liability coverted to functional currency at historic rate (ie rate at commencement date of lease)
Interest converted to functional currency at current rate (ie average rate for month)
Amortisation converted to functional currency at historic rate

B) At each period end:

Asset converted from lease currency to functional currency at historic rate
Liability converted from lease currency to functional currency at current rate, with differences vs prior period +/- movements g

2) Functional currency to Reporting Currency

Assets / liabilities converted at current rate

P&L items converted at average rate
mencement date of lease)

s prior period +/- movements going to FX gain / loss