Being able to break down the movements of a particular Agreement on a day-by-day basis allows you to provide further evidence to your auditors on the accuracy of the numbers your Journal and Disclosure reports are producing. This can be done using our Daily Calculation Report, available on each Agreement in Nomos One. This article will demonstrate where to find the report and how to understand its output.
Where to find the Daily Calculation Report
The Daily Calculation Report is found on the Agreement Overview page of an Agreement.
Unlike the previous version of the Daily Calculation Report, there is no need to regenerate your Agreement when a change has been made - the report will automatically sync with your Agreement data. We do recommend that you wait up to 5 minutes the first time you run the report for an Agreement, and then moving forward, up to 3 minutes for the changes to flow through.
- Search for the Agreement that you wish to extract the Daily Calculation Report for.
- On the Agreement Overview, scroll down to the section on the right-hand side that reads “Payments & Accounting”.
- Click “Download Daily Calculation Report”.
This will generate and download the Daily Calculation Report for the Agreement as a .csv file.
If you receive an error message when generating the Daily Calculation Report, run the Journal Report for that Agreement and view the Reporting Logs to understand what is stopping the Daily Calculation Report from running. Check out this article for common errors and their solutions.
How to read the Daily Calculation Report
If your Agreement uses the Simplified transition method, the report will start on your Organisation's transition date. The Simplified transition method does not take into account anything from before the transition date when calculating Lease Liability and Right of Use Asset.
If your Agreement uses the Modified Retrospective or Full Retrospective approach, or commences after the Organisation's transition date, the report will start on the Commencement Date of the Agreement. This will provide visibility of all calculated transactions and balances throughout the life of the lease.
Regardless of transition method, the Daily Calculation Report will stop producing an output on the Agreement's expiry date, as recorded through the expected renewals, the termination date, or the surrender date - whichever is relevant to the Agreement you are looking at.
If using Excel to view the report, once downloaded, make sure you click “Enable Editing”. This will prompt the formulae to run, providing the full output of the report.
The Daily Calculation Report tabs
The exported report has four tabs. The first three tabs information from your Agreement in Nomos One to generate information in the fourth tab, called “Daily Calculation”. The four tabs are as follows:
Journals
- The Journals tab is a journal list that is specific to this particular report. It is not identical to the Journal Report. This tab is used to match the Daily Calculation tab amounts to system-generated balances and transactions.
Payments
- The Payments tab shows the payment series that is active for each date of the Agreement. The “Series” column/s show the payment series of the Agreement, updated based on completed events.
Agreement
- The Agreement tab shows the interest rate and make good provision balance that is effective on each date of the Agreement.
The Daily Calculation Report
- The Daily Calculation Report tab is formula-driven and will only populate amounts when the spreadsheet performs a calculation. It is an accurate representation of the calculations that take place within the Nomos One IFRS Engine. It provides detail on the calculated transactions and balances across the life of the Agreement.
Reading the columns of the Daily Calculation Report
| Column | Explanation |
| A & B | Column A highlights certain events that took place or are scheduled to take place on the dates which are shown in Column B. |
| C | The interest rate that is effective on each date for the agreement. The rate is linked to the “Agreement” tab. |
| D | The daily interest rate, calculated from the annual rate in Column C. |
| E | The calculated net present value of Lease Liability, before any payment made on that date, and before any interest. The calculation is linked to the effective payment series in the 'Payment' tab, and the interest rate in Column C. |
| F | The payment that took place or is expected to take place on that date. |
| G | The Lease Liability after the payments shown on that date have been made. |
| H | The calculated interest expense for that date. The calculation is linked to the balance in Column G and the rate in Column D. |
| I | The Lease Liability Balance after the interest expense from Column H has been added to the balance for Column G. |
| J |
The gross Right of Use Asset balance on each date for this Agreement. It is calculated from the Lease Liability at commencement, is remeasured when events are completed, and is adjusted for the following balances/transactions:
Please note: If you use the Modified Retrospective Transition Method, the gross Right of Use Asset balance in the Daily Calculation Report may not match the amount in the Financial Statements Report. This is due to the difference in when the calculation begins (Commencement Date) and when the Journals/Reporting begins (Transition Date). |
| K | The Opening Book Value of your Right Of Use Asset on each date. It is calculated using the Closing Book Value from the previous date, and adjusted for any remeasurements or gains/losses on lease events that have adjusted the gross Right Of Use Asset balance in Column J. |
| L | The depreciation expense for each date of the Agreement. It is calculated using the total number of days in the Agreement, which is noted in the “Depreciation End Date Row” column of the “Payments” tab. |
| M | The running total of depreciation expense, calculated by adding the daily depreciation expense (in Column L) to the value of the previous day. |
| N | The Closing Book Value of the Right Of Use Asset on each date. It is calculated using the Opening Book Value (Column K) less the depreciation expense incurred on that date (Column L). |
| O | The future value of the Make Good Provision relating to this Agreement. It is linked to the “Agreement” tab. |
| P | The present value of the Make Good Provision, based on the amount in Column O and the interest rate effective on this date, noted in Column C. |
| Q | The changes, if any, to the amount in Column O. It is linked to any resulting remeasurements of the Right Of Use Asset. |
| R | The interest expense calculated on the Make Good Provision. It is linked to the present value of the Make Good Provision and the effective on this date, noted in Column C. |
| S to AO | Columns S to AO contain other IFRS accounts, such as Business Combinations and Direct Costs, which will have an impact on the Right Of Use Asset and Lease Liability balances. |
Nomos One does not provide or purport to provide any accounting, financial, tax, legal or any professional advice, nor does Nomos One purport to offer a financial product or service. Nomos One is not responsible or liable for any claim, loss, damage, costs or expenses resulting from your use of or reliance on these resource materials. It is your responsibility to obtain accounting, financial, legal and taxation advice to ensure your use of the Nomos One system meets your individual requirements.