Amortisation schedule
A period-by-period table showing the opening balance, interest charge, payment, and closing balance of the lease liability.
Definition
The amortisation schedule (or lease liability schedule) shows how the lease liability evolves over time. Each period, the opening balance is increased by the interest charge (calculated using the effective interest method) and reduced by the payment made. The closing balance at the end of each period feeds into the balance sheet.
Why it matters
The amortisation schedule is the primary calculation working paper for the lease liability. It must agree to the balance sheet and the statutory note liability movement figures. Auditors will trace the schedule to source terms.
In AuditLease
AuditLease produces a full amortisation schedule for each lease and makes it available for download as Excel. The schedule feeds directly into the period-end report and statutory note.
Related terms
Put this into practice with AuditLease
AuditLease handles IFRS 16 and FRS 102 lease calculations, statutory note generation, journal entries, and audit evidence — so your team spends less time on spreadsheets and more time on judgements.
This definition is for general information only and is not accounting or legal advice. Definitions are based on IFRS 16, FRS 102, and associated guidance published by the IFRS Foundation and the Financial Reporting Council. Users should refer to the applicable accounting standards and their professional advisers for judgement-specific matters.