Table of Contents
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Administration | Users
User Roles
Below is the list of user roles and their associated permissions.
Administrator | Accounting Administrator | User | Read Only | |
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My Leases Tab: | ||||
View Leases (and Approve Leases if Review is enabled) | Yes | Yes | Yes | Yes |
Edit / Clone / Delete Leases | Yes | Yes | Yes | No |
Export Leases | Yes | Yes | Yes | Yes |
Add Leases Tab: | ||||
Add Leases | Yes | Yes | Yes | No |
Administration Tab: | ||||
Users | Invite / Edit | View Only | View Only | No Access |
Groups | Add / Edit | View Only | View Only | No Access |
Policies | Manage | Manage | View Only | No Access |
Reporting Entity | Add / Edit | Add / Edit | No Access | No Access |
Customization | Add / Edit | Add / Edit | No Access | No Access |
GL Accounts | Add / Edit | Add / Edit | No Access | No Access |
Currency | Add / Edit | Add / Edit | View Only | No Access |
Email Alerts | Add / Edit | Add / Edit | View Only | No Access |
Administration | Reporting Entity
Reporting Entity
Reporting Entity is the financial reporting entity for which you produce financial statements. At your organization, a reporting entity might be known as a company, business unit, subsidiary, fund, institution, organization or office.
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Technical Guidance (FASB: 830-10-45-2/IAS 21: Paragraph 8): An entity's functional currency is the currency of the primary economic environment in which the entity operates; normally, that is the currency of the environment in which an entity primarily generates and expends cash.
Administration | Policies
Require Review + Approval for every new Lease created:
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Review Tab: When adding a lease, the Review tab only appears when Require Review policy is selected. The Review tab requires a user to submit a lease for review by another user.
Note: Users can optionally choose to send an email notification to reviewer(s) when a lease is ready for review.
Incomplete Status: Before submitting a lease for review, the lease remains in Incomplete status even if all required data fields are entered.
Review Status: After submitting a lease for Review, the lease status changes from Incomplete to Review.
Reporting: Leases in either an Incomplete or Review status cannot be exported at My Leases.
Reviewer: Any User can review and approve a lease in review except the last person to edit the lease. Approving a lease changes the status from Review to Complete and the lease can then be included in My Leases exports.
Lease Edits: When a lease is edited, the lease status is returned to Review, requiring approval by any user who did not last edit the lease.
Note: A lease created before Require Review is selected will not require a review even for edits made after Require Review is selected.
Administration | GL Accounts
Fixed Asset:
Fixed Asset GL Accounts are only used if you have a Finance Lease with an ROU Asset Life greater than the Lease Term (entered in the Add Lease tab). The final journal entry will transfer the remaining ROU Asset balance to a Fixed Asset GL Account.
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Suspense Account for Transferring Balances This GL Account is used:
For all revisions: When a revision is complete, we will freeze the old version of this lease. The final journal entry for the old version will zero out the balance sheet accounts (ROU Asset & Lease Liability).
We will use a Suspense Account in the event the ROU Asset does not equal the Lease Liability.
We will reverse the final journal entry for the old version in the first entry of the latest revision to establish the balance sheet accounts.
Gain/Loss Account: This GL Account is used if:
Your revision start date and end date are in the same month (i.e., terminating the lease). The difference between your ROU Asset and Lease Liability (if any) will be recorded in a Gain/Loss Account. (FASB: 842-20-40-1/IFRS 16: Paragraph 46(a))
If your revision’s adjustment of the Liability causes the carrying amount of the ROU Asset to be reduced to $0, then any remaining amount will be recorded in a Gain/Loss Account. (FASB: 842-20-35-4/IFRS 16: Paragraph 46(a))
If your revision is an Impairment, the reduction of the ROU Asset is recorded in a Gain/Loss Account. (FASB: 842-20-35-9/IFRS 16: Paragraph 33)
For a revision to “Derecognize ROU Asset under certain subleases:” The ROU Asset is reduced to $0 with the value of the ROU Asset transferred to a Gain/Loss Account, which you will reverse in the initial entry as a Lessor of the subleased asset. (FASB: 842-20-35-14/IFRS 16: BC233)
Administration | Currency
Foreign Exchange Rates:
Summary Guidance: When entering foreign exchange rates in the fields “Currency (From-To),” the “From” is the currency you are starting with and the “To” is the ending currency (i.e. the currency you are translating to). For example:
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55-11 Average rates used shall be appropriately weighted by the volume of functional currency transactions occurring during the accounting period. For example, to translate revenue and expense accounts for an annual period, individual revenue and expense accounts for each quarter or month may be translated at that quarter's or that month's average rate. The translated amounts for each quarter or month should then be combined for the annual totals.
My Leases
Lease Status:
Incomplete: This status indicates that all required fields are not filled out. Leases in an Incomplete status cannot be exported at My Leases.
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55-11 Average rates used shall be appropriately weighted by the volume of functional currency transactions occurring during the accounting period. For example, to translate revenue and expense accounts for an annual period, individual revenue and expense accounts for each quarter or month may be translated at that quarter's or that month's average rate. The translated amounts for each quarter or month should then be combined for the annual totals.
Add Lease Screen
Local Currency:
Summary Guidance: Local Currency is the currency used to pay your lease obligations (typically the currency used in the entity's particular geographical location). Local Currency is used in the following tabs:
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As a practical expedient, a lessee may elect, by class of underlying asset, not to separate nonlease components from lease components, and instead account for each lease component and any associated nonlease components as a single lease component.
Lease Term Guidance Wizard
Lease Term:
Summary Guidance: The Lease Term is the number of months from the Start Date to the End Date
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A lessee’s past practice regarding the period over which it has typically used particular types of assets (whether leased or owned), and its economic reasons for doing so, may provide information that is helpful in assessing whether the lessee is reasonably certain to exercise, or not to exercise, an option. For example, if a lessee has typically used particular types of assets for a particular period of time or if the lessee has a practice of frequently exercising options on leases of particular types of underlying assets, the lessee shall consider the economic reasons for that past practice in assessing whether it is reasonably certain to exercise an option on leases of those assets.
Lease Classification Wizard
Classification:
Summary Guidance: Classification is relevant for FASB ONLY; all leases under IFRS are classified as Finance Leases. Under FASB, a lease will be classified as either Operating or Finance. A lease that meets at least one of the criteria below will be classified as a Finance Lease. All other leases will be classified as Operating Leases.
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A lessee’s past practice regarding the period over which it has typically used particular types of assets (whether leased or owned), and its economic reasons for doing so, may provide information that is helpful in assessing whether the lessee is reasonably certain to exercise, or not to exercise, an option. For example, if a lessee has typically used particular types of assets for a particular period of time or if the lessee has a practice of frequently exercising options on leases of particular types of underlying assets, the lessee shall consider the economic reasons for that past practice in assessing whether it is reasonably certain to exercise an option on leases of those assets.
Add Revision:
Summary Guidance: Adding a Revision is how you amend, modify, remeasure or change a lease at or before the end of the lease. By selecting the “Add Revision” button on the top right of the screen in edit mode, the software will freeze the lease and then allow you to change parameters that only affect the lease on/after the date of the Revision. The modified lease payments will adjust the lease liability with a corresponding adjustment to the ROU asset. If your revision’s adjustment of the Liability causes the carrying amount of the ROU Asset to be reduced to $0, then any remaining amount will be recorded in a Gain/Loss Account.
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IFRS 16:
Modifications/Remeasurements: (Paragraphs 39 to 46)
Impairment: (Paragraph 33)
Change in Index/Change in Interest Rate: (Paragraphs 42 to 43)
Derecognize ROU Asset under certain subleases: (BC 233)
Partial Termination: Update ROU Asset Value
Summary Guidance: Because you have selected Partial Termination, you are given the ability to enter a value to over-write the ROU Asset, creating a Gain/Loss to the account selected in the GL Accounts Tab. Follow the steps below:
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