Payment frequency
How often lease payments are made — monthly, quarterly, annually, etc.
Definition
Payment frequency determines the intervals at which cash payments are made under the lease. Common frequencies include monthly, quarterly, semi-annual, and annual. The payment frequency affects the shape of the amortisation schedule and the periodic interest calculation.
Why it matters
Different payment frequencies produce different amortisation patterns even with the same annual payment. Monthly payments produce slightly lower liabilities than annual payments for the same total cash outflow, because of the timing difference.
In AuditLease
AuditLease supports monthly, quarterly, semi-annual, annual, quarter-end, and quarter-days payment frequencies.
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.