Leased Assets with floating rate interest

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Dear Sapians,

Our client has leased assets under lease agreements with banks/leasing co. that apply floating(variable) rate on lease rentals rather than flat rate. In these leased agreements client has the option to take quarterly/semi-annual/annual KIBOR (Karachi Inter Bank Offer Rate) plus some fixed rate.

For example, our client has taken a lease from a bank under following terms:

Lease Amount: Rs. 9,435,000

No. of Assets: 15

Payment Frequency: Monthly

Lease Terms: 36 periods

First rent: 314,685.00

Rent type: Arrear (i.e. payments are due at the month end)

IRR: 11.42%

Following are few payments from lease schedule:

Sr. # Rental Due Date Rental Principal Mark-up Principal O/S

1 30-Jan-2007 314,685 218,055 96,630 9,216,945

2 28-Feb-2007 314,685 220,288 94,397 8,996,657

3 28-Mar-2007 314,685 222,544 92,141 8,774,113

4 28-Apr-2007 312,187 226,713 85,474 8,547,400

5 28-May-2007 312,187 228,921 83,266 8,318,479

6 28-Jun-2007 312,187 231,151 81,036 8,087,328

7 28-Jul-2007 311,161 234,197 76,964 7,853,131

Now, can we do the above scenario through leased assets in Asset Accounting where system posts interest expense during depreciation.

Problem that I see here is the flowting rate that changes every quarter and changes the rentals.

How can we do it?

Regards

Zain