---
title: How do I calculate an Immaterial lease?
description: How to account for immaterial leases in your portfolio
---
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2. [Lease Accounting](https://help.occupier.com/knowledge/lease-accounting?hsLang=en)
3. [Recognizing a Lease](https://help.occupier.com/knowledge/lease-accounting?hsLang=en#recognizing-a-lease)
# How do I calculate an Immaterial lease?
## How to account for immaterial leases in your portfolio
### What is an immaterial lease?
**Immaterial leases** under IFRS 16/ASC 842 are leases that are either **low-value** (IFRS 16, FRS102, GASB87) or **not material** (ASC 842), and thus can be **excluded from capitalization** and instead recognized as a **period expense**.
**Examples of immaterial (low-value) leases:**
- A photocopier leased for a small office
- Individual mobile phones or tablets leased for employees
An organization's materiality threshold varies depending on several factors. For more information on how to assess materiality and recognition thresholds, see this article for details [**How to Assess Materiality and Recognition Thresholds.**](https://www.occupier.com/blog/how-to-assess-materiality-and-recognition-thresholds/)
### Calculating an Immaterial Lease
In accounting, proceed with the process of measuring and calculating a lease:
**Accounting\>Select the Lease\>Get Started**
The **Calculate Lease** wizard will display.
Confirm the dates and amounts in the steps for:
**1 -** term, **2 -** lease payments, and **3 -** deferred rent.
In step **7 Classify,** select "Immaterial" and proceed with completing any remaining steps, and submit upon completion.
### Immaterial Lease Schedule and Disclosures Report
Once the steps above are complete, Occupier will provide an Deferred Rent lease schedule that expenses the lease payments on a straight-line basis over the lease term
**Deferred Rent Schedule**
**Disclosures Report - Rent Expense for Reporting Period -** Immaterial lease expenses for the reporting period will be reflected in the Disclosures Report, which features a tab that provides supporting details for the amounts recorded in the journal entries.
**Disclosures Report - Future Commitments -** Future commitments related to immaterial leases will be included in the Disclosures Report, specifically within the Maturity Analysis section. Additionally, an Immaterial tab will offer detailed support for the anticipated cash payments due in future periods
****
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