Lease Liabilities

Movement Table Guideline

May 2, 2022
1
Movement Table Overview
What is the Movement Table? What is the movement table
used for?
The Movement Table captures year-to-date changes to specific Balance
Sheet accounts. Due to the materiality of IFRS 16 Leases, the Liabilities ● Cash Flow Statement
from finance lease account is particularly important. ● Free Cash Flow Analysis
● Budget vs Actuals
● Management Reporting

LucaNet Accounts:
• 16804100 Liabilities from finance lease (non-current)
• 16804200 Liabilities from finance lease (current)

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 Movement Table Overview

Account movements should be recorded in the appropriate columns:

• The 600 Start column is automatically populated with the end balance from the previous year. If the start value is incorrect, please contact
Group Accounting so that it can be amended
• The letters in brackets indicates if a Debit (D) should be recorded or a Credit (C). Some columns allow both to be recorded (D/C)
• Columns record movements that either have cash effects (actual cash inflows/outflows) or non-cash effects (changes to balance sheet account
that have no actual cash impact)

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Movement Table Columns Details

Columns with non-cash effects Columns with cash effects

610 Raising (C): Year-to-Date lease additions should be
recorded here. You can 1) Initially record the current and non-
current portions in their respective accounts or 2) Record the
entire addition in the 16804200 Liabilities from finance lease
(current) row and then use the 650 Transfer column to move
the non-current portion into the correct row
630 Interest Accrued (C): Year-to-Date interest accrued should
be recorded in the 16804200 Liabilities from finance lease
(current) row.
650 Transfer (D/C): This column records movements between
the non-current and current accounts. The debits and credits
recorded in this column must net to zero.
660 Other non-cash effect (D/C): Other account movements
with no cash inflow/outflows should be recorded here. Some
examples are lease disposals or FX valuation effects of leases
recorded in foreign currencies
620 Redemption (D): Year-to-Date lease payment expenses
should be recorded in this column. Lease payments should only
be recorded in the 16804200 Liabilities from finance lease
(current) row. Any lease payments mistakenly recorded in the
non-current row are excluded from our reports. This column
feeds into the LucaNet view: 102 – Integrated Planning
Dashboard for Local Entities. The lease payment is calculated as
the change between two month so any incorrect data will affect
the subsequent month’s calculation.
This column is very important as this number appears on
Management Reporting and is used for Cash Flow Analysis and
budgeting decisions
640 Interest Paid (D): Although this column usually has a cash
effect, Lease Liability Interest is not actually paid so this column
should not be populated.

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Where to find Movement Table data in Contavio
The data required for the lease liability movement table can be found in numerous views and reports in Contavio. The following Contavio journal entries
will have an impact on the movement table:

610 Raising Column

Posting Type: Right-of-Use Asset Increase
DR 21381100 Buildings Right-of-use Asset (Balance Sheet Account)
DR 21803100 Transport Vehicles Right-of-use Asset (Balance Sheet Account)
DR 21884100 Other equipment Right-of-use Asset (Balance Sheet Account)
DR 21812100 IT equipment Right-of-use Asset (Balance Sheet Account)
DR 21581100 Technical equipment Right-of-use Asset (Balance Sheet Account)
CR 16804100/16804200 Lease Liabilities (Balance Sheet Account)

620 Redemption Column:

Posting Type: Decrease Lease Liability
DR 16804200 Lease Liabilities current (Balance Sheet Account)
CR 62060000 Buildings variable rental/lease (P&L Account)

630 Interest Accrued Column:

Posting Type: Interest Expense Recognition
DR 66060100 Interest Expense on Lease Liabilities (P&L Account)
CR 16804200 Lease Liabilities current (Balance Sheet Account)

Typically, it is easier to use the accounts highlighted in green for the movements as there will be additional journal entries made to the Lease Liabilities
accounts due to reclassifications between the current and non-current accounts

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Movement Table data in Contavio (Method 1)
The Monthly Contavio Closing Posting Voucher has a summarized view of these journal entries. Generally, the balances below can be
used in the movement table. However, the closing only represents the movements for one month, not year-to-date movements. You
must sum the relevant months to calculate the year-to-date balance.

1) Lease Addition

2) Lease Payment

2) Lease Payment

3) Interest Accrued

The debits and credits of the Lease Liability non-current and current accounts represents both reclassification and lease payments,
however, these transactions types are not clearly separated. Instead, the increases and decreases need to be assessed on a monthly
basis to determine which portion belongs to the lease payment and which is a result of reclassification.

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Movement Table data in Contavio (Method 2)

A CSV file can also be exported with the year-to-

date Closings. To create this file, the current
month’s close must be approved. Click to open the
current month’s closing and go to: Export →
Standard Views – Year to Date → CSV – Per
Account

After exporting, you can filter the entries by

PostingStep_Name to group account movement
types.

All relevant lines should be added up to calculate

the Movement Table balance and enter it into the
correct column

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Movement Table data in Contavio (Method 2)
Filter on Right of Use Asset Increase/ Right of Use Asset Recognition for journal entry lines related to Lease Additions:
If the entity has only Building ROU Assets, filtering only on
Right of Use Asset Increase should be adequate for lease
additions.

However, some other Right of Use Asset additions are

found under Right of Use Asset Recognition. It should be
noted there will also be other journal entry lines under this
PostingStep_Name. Additions will always be debits and
belong to Balance Sheet Asset Accounts Numbers

Filter on Decrease Lease Liability for journal entry lines related to Lease Payments:

Filter on Interest Expense Recognition for journal entry lines related to Interest Accrued:

The 650 Transfer Column number can be calculated if all other columns have been populated correctly. The remaining difference between the Lease
Liability Accounts should represent any reclassification between the non-current and current accounts. The total in this column should net to zero with
one account being debited and one being credited.

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