NetLease - Supplemental balance sheet information

Overview

The Supplemental Balance Sheet Information report summarizes lease balances at the end of a period, grouped by lease classification. It produces the right-of-use (ROU) asset and lease liability figures for the supplemental balance sheet table in the lease footnote, separated between Financing and Operating leases. Each balance line can be drilled down by lease and then to the individual subledger (schedule line) amounts behind it, so every figure in the footnote can be traced to source.

For each lease classification (Financing and Operating), the report presents the following balance lines:

Balance line	What it includes
Right of Use Asset Balance - Gross	Gross ROU asset balance at period end
Right of Use Asset Balance - Accumulated	Accumulated amortization on the ROU asset at period end
Right of Use Asset Balance - Net	Net ROU asset balance (gross less accumulated) at period end
Total Lease Liability Balance	Total lease liability balance at period end
Current Portion of Lease Liability Balance	Short-term (current) portion of the lease liability, from the short-term reclass amount on the schedule line

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) - period-end balances
Standard	ASC 842-20-45 (separate presentation or disclosure of finance and operating lease ROU assets and lease liabilities)
Can be scheduled	Yes - see NetLease - Scheduled Scripted Reports

When to use this report

Quarter-end and year-end reporting - to populate the supplemental balance sheet table in the financial statement footnotes.
Audit requests - when auditors ask for ROU asset and lease liability balances by classification, with lease-level support.
Current/long-term split - to obtain the current portion of the lease liability, so the long-term portion can be derived for the balance sheet.
Month-end review - to review period-end lease balances before closing.

Prerequisites

A role with access to NetLease reports (the NetLease Report record).
Leases are classified (Financing or Operating) and their schedules are generated for the reporting period.

Running the report

Navigate to NetLease > Reports > Disclosure Reports > Supplemental Balance Sheet Information > Run.
Set the filters (see below). Set the accounting period to the month, quarter or year being reported.
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.
Consolidated Exchange Rate	Rate type used to translate results: Average, Current, Historical, Custom or None. Accounts that are not OneWorld see 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 grouping level of the report (for example the balance line, lease and subledger detail), or Full Hierarchy (all levels).
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 balances for. When a quarter or year period is selected, the report shows the balances at the end of the final month of that quarter or year.
From Date / To Date	Alternative to the accounting period, for a custom date range.
Accounting Book	Multi-book accounts only. Reports the selected book, using each lease's secondary classification when the secondary book is selected.
Show Non-Book Specific Transactions	Multi-book accounts only. Available once an accounting book is selected.
Hide Currency Symbol	Removes currency symbols from the output.
Show FX Calculations	Shows amounts in lease, subsidiary and consolidated currency, with the exchange rates used. Multi-currency accounts only.

Recommended Approach

Filter the report for a single month to view the balances at the end of that month.

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 a section for each lease classification (for example Financing and Operating), with the five balance lines in each section. Expand a balance line to see the amount by lease, then expand a lease to see the subledger line behind it. Click Export to save the report as an Excel file.

When Show FX Calculations is checked, the single Amount column is replaced with the following columns:

Column	Description
Amount (Contract)	Balance in the lease's contract currency
Contract Currency	The lease's contract currency
FX Rate	Rate used to convert from contract currency to subsidiary currency
Amount (Subsidiary)	Balance in the subsidiary's base currency
Subsidiary Currency	The subsidiary's base currency
Consolidation Rate	Rate used to translate to the consolidation subsidiary's currency
Amount (Consolidated)	Balance in the consolidated (reporting) currency

Audits, disclosures and footnotes

ASC 842-20-45 requires finance lease and operating lease ROU assets, and finance lease and operating lease liabilities, to be presented separately on the balance sheet or disclosed in the notes. This report provides those balances separated by classification, along with the current portion of the lease liability needed to split each liability between current and long-term.

Below is an example of a Supplemental Balance Sheet disclosure for Financial Statements. The report within NetLease is designed to fulfill this disclosure requirement.

Footnote line	Where to find it
Operating lease ROU assets	Right of Use Asset Balance - Net, Operating section
Finance lease ROU assets (gross, accumulated amortization, net)	Right of Use Asset Balance - Gross / Accumulated / Net, Financing section
Current portion of lease liabilities	Current Portion of Lease Liability Balance, for each classification
Long-term lease liabilities	Total Lease Liability Balance less Current Portion of Lease Liability Balance, for each classification
Total lease liabilities	Total Lease Liability Balance, for each classification
Weighted-average remaining lease term	NetLease - Weighted Average Term Report
Weighted-average discount rate	NetLease - Weighted Average Rate Report

Tips for audit support

Export at Full Hierarchy to give auditors the summary, lease-level and subledger-line detail in one file.
Run the report for each balance sheet date presented (for example current year-end and prior year-end) with the same filters, so the footnote columns are consistent.
Tie Total Lease Liability Balance to the Total Lease Liabilities line of NetLease - Undiscounted Lease Maturity Waterfall, run with the same filters and date.
Keep the export with your close workpapers. Scheduled reports can save it automatically each period.

Frequently asked questions

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. To build a different layout, see NetLease - Custom Scripted Report.

What happens when I select a quarter or a year?

This is a balance report, so it does not total activity across the period. For a quarter or year period, it reports the balances at the end of the final month of that quarter or year.

Where is the long-term portion of the lease liability?

The report shows the total lease liability and the current portion. The long-term portion is the total less the current portion. For more on the split, see NetLease - Lease liability short-term/long-term split.

Which leases are included?

Only leases classified as Financing or Operating (for the selected accounting book, on multi-book accounts). Leases with other classifications, such as Short Term / Low Value, are not included.

Which exchange rate is used for foreign-currency leases?

ROU asset balances (gross, accumulated and net) use the lease's historical rate. Lease liability balances (total and current portion) use the rate for the reporting period. The Consolidated Exchange Rate filter then controls translation to the reporting currency. Check Show FX Calculations to see every rate used.

How does it work with multi-book accounting?

When an accounting book is selected, the report uses each lease's classification for that book. For example, a lease that is Operating in the primary book and Financing in a secondary book is reported under the classification for the selected book.

Troubleshooting

A lease is missing - confirm the lease is classified as Financing or Operating and its schedule covers the selected period, and check that no subsidiary, segment or lease filter excludes it.
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.
Balances do not match the period expected - run the report for a single accounting period (month, quarter or year) rather than a custom date range.
FX amounts look wrong - rerun with Show FX Calculations checked and review the rates applied to each line.