Maturity Analysis
Category
Financial Reporting
A maturity analysis is a required ASC 842 disclosure that shows the undiscounted future lease payments for each of the first five years and a total for remaining years thereafter. It reconciles the total undiscounted payments to the discounted lease liability on the balance sheet.
Why it matters
The maturity analysis is one of the most scrutinized lease disclosures. It shows investors exactly when future cash outflows will occur, enabling them to assess liquidity risk and capital requirements. The reconciliation from undiscounted payments to the discounted liability reveals the total interest component embedded in the lease portfolio.
The disclosure must be presented separately for operating and finance leases, and the "thereafter" bucket must aggregate all payments beyond year five. Accuracy requires correct payment schedules, escalation assumptions, and option treatment for every lease in the portfolio.
Lease accounting platforms generate the maturity analysis automatically from individual lease payment schedules, ensuring the required time buckets and reconciliation to the balance sheet liability are always current.
How Arvexi handles this
Arvexi generates maturity analysis disclosures automatically, aggregating undiscounted future payments across the entire portfolio by year. The reconciliation to the balance sheet liability is built in, and the output updates in real time as leases are added, modified, or terminated.
Maturity analysis outputs feed directly into Arvexi's Financial Close disclosure packages, ensuring footnote-ready data is available as part of the close cycle.
Explore how Arvexi automates this: Lease Accounting · Financial Close