NetLease - Weighted average rate report
Overview
The Weighted Average Rate report calculates the weighted-average discount rate of a lessee's leases as of the end of a reporting period. The weighted-average discount rate is a required lease footnote disclosure under ASC 842-20-50-4(g)(4), presented separately for finance and operating leases.
The report reads each lease's lease liability balance, undiscounted remaining payments and discount rate from the NetLease subledger for the selected period, then weights each lease's discount rate within its lease classification. Two weighted averages are produced:
| Weighted average | How it is calculated |
|---|---|
| Weighted Average Rate By Liability Balance | Each lease's discount rate x (lease liability balance / total lease liability balance of the lease classification). The weighted amounts for the leases in a classification add up to that classification's weighted-average discount rate. |
| Weighted Average Rate By Remaining Payments | Each lease's discount rate x (undiscounted remaining payments / total undiscounted remaining payments of the lease classification). |
Weighting is done within each lease classification (for example Operating and Financing separately), so the report produces a separate weighted-average rate for each classification, as the disclosure requires. Amounts are translated to the reporting currency before they are weighted, so leases in different currencies can be weighted together.
Report details
| Report type | Scripted report (runs in the NetLease report engine, not a saved search) |
| Category | Disclosure reports |
| Data source | NetLease subledger (lease schedule lines) |
| Standard | ASC 842-20-50-4(g)(4) - weighted-average discount rate |
| Can be scheduled | Yes - see NetLease - Scheduled Scripted Reports |
When to use this report
- Quarter-end and year-end reporting - to populate the weighted-average discount rate for finance and operating leases in the lease footnote.
- Audit requests - when auditors ask how the weighted-average discount rate was calculated, with the lease-level rates and balances behind it.
- Multi-currency or consolidated reporting - to weight leases held in different currencies or subsidiaries on a consistent, translated basis.
- Reviewing new leases or modifications - to see how new leases or remeasured rates move the weighted-average rate between periods.
Prerequisites
- A role with access to NetLease reports (the NetLease Report record).
- Leases are classified and their schedules are generated through the reporting period.
- For multi-currency accounts, exchange rates are set up in NetSuite for the period being reported.
Running the report
- Navigate to NetLease > Reports > Disclosure Reports > Weighted Average Rate Report > Run.
- Set the filters (see below). Select the last full month of the reporting period.
- Click Preview to view the results, or Export to download them to Excel.
| Filter | Description |
|---|---|
| Subsidiary | Limits results to leases for the selected subsidiary. |
| Consolidation Subsidiary | Subsidiary to consolidate the results as. This drives FX conversion to that subsidiary's base currency. Multi-currency accounts only. |
| Currency | Currency to display the report in. Multi-currency accounts only. |
| Consolidated Exchange Rate | Rate type used to translate balances: Average, Current, Historical, Custom or None. Accounts that are not OneWorld see this as Currency Exchange Rate, with Current (To Date), Historical (From Date), Custom or None. |
| Consolidation Date | Date to pull the exchange rate from when Custom is selected. |
| Export Level | Level of detail in the export: one option per report level (Level 1, Level 2 and so on), or Full Hierarchy (all levels). |
| Export Format | Specifies what format the report should be exported in (Excel or CSV). |
| Department / Class / Location | Limits results to leases with the selected segment values. Multi-select. |
| Lease | Limits results to a single lease. |
| Accounting Period | Period to report on. If a quarter or year period is selected, the report uses the balances of the final month of that quarter or year. |
| From Date / To Date | Alternative to the accounting period. Enter the first and last day of the last full month being reported. |
| Hide Currency Symbol | Removes currency symbols from the output. |
| Show FX Calculations | Shows balances in lease, subsidiary and consolidated currency, with the exchange rates used. Multi-currency accounts only. |
Filter by the last full month of the reporting period. For example, for a December 31 year-end disclosure, filter by 12/01 to 12/31 of the reporting year.
Show FX Calculations Filter
This checkbox enables users to view lease balances in the lease currency, subsidiary currency, and consolidated currency. It also displays the exchange rates used to calculate these balances.
This option is useful for viewing and reconciling balances for leases that have undergone remeasurement or have been consolidated into a different subsidiary currency.
Results
The report shows the consolidated liability balance, consolidated undiscounted remaining payments and the weighted-average rates for the period, separated by lease classification and broken down by lease type. Lease types can be expanded to view individual leases and their detailed information. Click Export to save the report as an Excel file.
| Column | Description |
|---|---|
| Subsidiary | Lease subsidiary. OneWorld accounts only. |
| Lease Type | Lease type of the lease. |
| Active Leases | Count of leases included. |
| Date | Period end date of the schedule line used. |
| Discount Rate % | The lease's discount rate (incremental borrowing rate) on the schedule line for the period. |
| Liability Balance | Lease liability balance at the end of the period, translated to the reporting currency. |
| Undiscounted Remaining Payments | Remaining undiscounted lease payments, translated to the reporting currency. |
| Currency | Lease currency. |
| Weighted Average Rate By Liability Balance | Discount rate weighted by the lease's share of the classification's total liability balance. The classification total is the weighted-average rate. |
| Weighted Average Rate By Remaining Payments | Discount rate weighted by the lease's share of the classification's total undiscounted remaining payments. |
When Show FX Calculations is checked, the Liability Balance and Undiscounted Remaining Payments columns are replaced by Lease Currency, Subsidiary Currency and Consolidated versions, and FX Rate and Consolidation Rate columns are added. Weighting then uses the Consolidated amounts.
Audits, disclosures and footnotes
The report is designed to produce the weighted-average discount rate required by ASC 842-20-50-4(g)(4).
ASC 842-20-50-4 For each period presented in the financial statements, a lessee shall disclose the following amounts relating to a lessee’s total lease cost, which includes both amounts recognized in profit or loss during the period and any amounts capitalized as part of the cost of another asset in accordance with other Topics, and the cash flows arising from lease transactions:
a. Finance lease cost, segregated between the amortization of the right-of-use assets and interest on the lease liabilities.
b. Operating lease cost determined in accordance with paragraphs 842-20-25-6(a) and 842-20-25-7.
c. Short-term lease cost, excluding expenses relating to leases with a lease term of one month or less, determined in accordance with paragraph 842-20-25-2.
d. Variable lease cost determined in accordance with paragraphs 842-20-25-5(b) and 842-20-25-6(b).
e. Sublease income, disclosed on a gross basis, separate from the finance or operating lease expense.
f. Net gain or loss recognized from sale and leaseback transactions in accordance with paragraph 842-40-25-4.
g. Amounts segregated between those for finance and operating leases for the following items:
- Cash paid for amounts included in the measurement of lease liabilities, segregated between operating and financing cash flows
- Supplemental noncash information on lease liabilities arising from obtaining right-of-use assets
- Weighted-average remaining lease term
- Weighted-average discount rate
The following is an example of a Weighted Average Rate Summary in financial statements. The report in NetLease is intended to fulfill the disclosure requirement:
| Disclosure requirement | Where to find it |
|---|---|
| (g)(1)-(2) Cash paid and noncash ROU additions | NetLease - Supplemental Cash Flow Information |
| (g)(3) Weighted-average remaining lease term | NetLease - Weighted Average Term Report |
| (g)(4) Weighted-average discount rate | This report - Weighted Average Rate By Liability Balance, per lease classification |
Tips for audit support
- Export at Full Hierarchy to give auditors the classification totals and the lease-level rates and balances behind them in one file.
- Run the report for each period presented with the same filters, so the footnote figures are consistent.
- For foreign-currency leases, check Show FX Calculations so the export shows the exchange rates used to translate each balance before weighting.
Frequently asked questions
Should I disclose the rate weighted by liability balance or by remaining payments?
The report provides both. Weighted Average Rate By Liability Balance weights each rate by the lease's share of the classification's lease liability. Weighted Average Rate By Remaining Payments weights each rate by the lease's share of undiscounted remaining payments. Use the basis your organization has adopted for the disclosure and apply it consistently.
Why is the rate shown separately for each lease classification?
ASC 842-20-50-4(g) requires the weighted-average discount rate to be presented separately for finance and operating leases. The report weights each lease against the total of its own classification, so each classification has its own weighted-average rate. Use the classification totals rather than adding them together.
What if I select a quarter or a full year?
The report uses the balances of the final month of the selected quarter or year, which is the point-in-time position needed for the disclosure.
How are leases in different currencies handled?
Each lease's liability balance and remaining payments are translated to the reporting currency using the Consolidated Exchange Rate selection before weighting. If None is selected, balances stay in each lease's own currency, so weighting across leases in different currencies would not be on a common basis.
Is this report a saved search? Can I edit its columns?
No. It is a scripted report, so its rows and columns are fixed by NetLease. You can narrow results with the filters, or add custom filters. To build a different layout, see NetLease - Custom Scripted Report.
What happened to the Weighted Average Rate Summary saved search?
The Weighted Average Rate Summary and Weighted Average Rate Detail Input saved searches were moved to the Deprecated report category in the April 2025 release. This report replaces both. See NetLease - Weighted Average Rate Summary.
Troubleshooting
If the desired lease is not appearing, verify that the lease status is not set to "Pending" and that the lease has not been marked as inactive.
Weighted averages look wrong - confirm the filter covers only the last full month of the reporting period. A multi-month From Date / To Date range is not the same as selecting the final month.
If the exchange rate does not appear as expected, review the selection in the "Consolidated Exchange Rate" filter. The exchange rates used in the report can be configured by adjusting the filter to one of the following options:
- Average - Based on the average currency exchange rate effective over the filtered period.
- Current - Based on the currency exchange rate effective at the end of the reported period.
- Historical (From Date) - Based on the currency exchange rate effective at the start of the reported period.
- Custom - The exchange rate is pulled as of the date entered in the "Consolidated Exchange Rate Date" field.
- None - No consolidation occurs; values are pulled directly from the subledger in the contract currency of the lease, regardless of the selected currency.
Balances differ from the general ledger - the report reads from the NetLease subledger, not from posted journals. Use NetLease - Reconciling the Subledger to the General Ledger to tie out.
