NetLease - Components of Lease Costs & Impairments Report
Purpose
This report provides a detailed summary of lease costs categorized by lease type, supporting the required disclosures for lease expenses in your financial statement footnotes.
Quantitative Disclosure Guidance
Below is the lease quantitative disclosure guidance:
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 Presentation and disclosure 9-9
- Weighted-average discount rate.
Below is an example of the "Summary of Components of Net Lease Cost" disclosure for Financial Statements. The report within NetLease is designed to fulfill this disclosure requirement.
Navigation
NetLease > Reports > Disclosure Reports > Components of Lease Costs & Impairments Report > Run
Filtering
The report search can be refined by adjusting filters for subsidiary, currency, department, class, location, accounting period, or date. After selecting the desired filters, click the Preview button to view the results.
Filter the accounting period to reflect the current reporting period.
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
After running the report, users will see the breakdown of Lease Cost Components and ROU Asset Impairment amounts by lease. Each lease can be drilled down to view the corresponding transactions. To download the report, simply select the Export button to save it as an Excel file.