Investment in Lease

12 Months Ended

Sep. 30, 2018

Investments, All Other Investments [Abstract]

Investment in Lease, net

During fiscal year 2018 the Company entered into an agreement where it would supply equipment to be used in a customer's IT infrastructure in conjunction with the Company providing managed services. The agreement contained a lease because the customer had a right to use the equipment for a stated period of time. The lease was determined to be a direct-financing lease and an account was created for the lease. At lease inception a lease receivable was recorded, which included future minimum lease payments at present value using the implicit interest rate. Interest income will be recognized on a monthly basis utilizing the effective-interest method. Interest income is recorded in revenue as equipment leasing is part of the Company's central operations.

A summary of components for the Company's investment in lease, net is as follows:



Fiscal year 2018 ending September 30:	(Amounts in thousands)
Investment in lease, gross	$	1,038
Unearned income	(228		)
Total investment in lease, net	$	810
Current portion	$	246
Noncurrent portion	$	564

The schedule of future minimum lease payments receivable is as follows:



Fiscal year ending September 30:	(Amounts in thousands)
2019	$	378
2020	378
2021	282
Minimum lease payments including interest	$	1,038
Amount representing interest	(228		)
Minimum lease payments excluding interest	$	810

- Definition

Disclosure of accounting policy for those finance, loan and lease receivables classified as held for investment. This disclosure may include (1) the basis at which such receivables are carried in the entity's statements of financial position (2) how the level of the allowance for loan and lease losses is determined (3) when impairments, charge-offs or recoveries are recognized for such receivables (4) the treatment of commitment and other fees and loan origination costs (including, if applicable, how the entity accounts for fees and costs associated with credit cards that are either purchased or originated) (5) the treatment of any premiums or discounts or unearned income (6) the entity's income recognition policies for such receivables, including those that are impaired, past due or placed on nonaccrual status (for impaired loans, the policy for recognizing interest income on such loans, including how cash receipts are recorded) and (7) the treatment of foreclosures or repossessions.

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