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My ROU Asset end date looks wrong
My ROU Asset end date looks wrong

This article covers the set-up of the ROU End Date and how modification of the Accounting End Date impacts the ROU End Date.

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Written by Support
Updated over a week ago


For all leases other than an operating lease under ASC 842, you input the initial ROU End Date for the specific agreement in the Initial Recognition tab under Right of Use Asset:

Modification of the Accounting End Date and the impact on the ROU Asset

Modification of lease terms frequently occurs. To account for a change in lease term in Cradle, you select "Modifications" then "Add New Modification."

You then select "Accounting Expiry."

In the modal window, you will be required to enter the date effective of the modification and the new accounting end date. 

If the usage of the ROU Asset is tied to when the lease expires, you'll want to add another modification and update the ROU Asset end to that as the same as the accounting expiry end date. 

A quick check of the overview page will highlight if the ROU End Date is different from the Accounting end date. 

When updated in the modification tab, you will see that both the right of use asset and lease liability end on the same day:


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