NetLease - Lease purchase options
Overview
The Lease Purchase Options report is a saved search that lists every lease with a purchase option recorded against it, one line per lease. Each line includes the key contract provision information for the purchase option, so the purchase option terms across the lease portfolio can be reviewed in one place instead of opening each lease.
Purchase options are recorded on the lease as a NetLease Contract Provision child record with the Contract Provision Type field set to Lease Purchase Option. The report only shows purchase options entered this way. See NetLease - Capturing Contract Provisions for how to add a contract provision.
Report details
| Report type | Saved search (bundled with NetLease, not a scripted report) |
| Category | Disclosure reports |
| Data source | NetLease Contract Provision records with a Contract Provision Type of Lease Purchase Option |
| Standard | Supports the qualitative "nature of leases" disclosure in ASC 842-20-50-3(a) |
When to use this report
- Quarter-end and year-end reporting - to draft the narrative footnote describing the terms and conditions of purchase options in the lease portfolio.
- Audit requests - when auditors ask for a listing of leases with purchase options and the related contract terms.
- Lease classification and term reviews - to identify leases where a purchase option exists, so the accounting team can revisit whether exercise is reasonably certain.
- Portfolio management - to see which leased assets could be acquired and at what amounts, for planning and budgeting.
Prerequisites
- A role that can run NetLease disclosure reports and view NetLease Contract Provision records.
- Purchase options are entered as NetLease Contract Provision records on each lease, with the Contract Provision Type set to Lease Purchase Option. See NetLease - Capturing Contract Provisions.
Running the report
- Navigate to NetLease > Reports > Disclosure Reports > Lease Purchase Options > Run.
- Set the filters (see below). The results update automatically as filter options are selected.
| Filter | Description |
|---|---|
| Lease | Limits results to a single lease, or select "All" for every lease. |
| Subsidiary | Limits results to leases for the selected subsidiary. |
| Lease Type | Limits results to leases of the selected lease type. |
Filter by specific lease or by "All" to see a full list of leases with purchase options.
Results
The report shows a single line per lease. Each line includes the contract provision key information for the purchase option. Because the report is a saved search, the exact columns are those shown in the search results below.
Audits, disclosures and footnotes
Under ASC 842-20-50-3(a), a lessee discloses qualitative information about the nature of its leases, including the terms and conditions of its lease arrangements. Purchase options are one of the primary contract provisions NetLease groups for disclosure reporting. This report provides the lease-by-lease listing behind that narrative.
| Disclosure requirement | Where to find it |
|---|---|
| Purchase options - existence and terms | This report |
| Options to extend (renewal options) | NetLease - Lease renewal option |
| Expansion options | NetLease - Lease expansion option |
| Residual value guarantees | NetLease - Lease residual guarantees |
Tips for audit support
- Run the report with Lease set to "All" and export the results to give auditors the full listing.
- Agree a sample of lines back to the lease contract, using the contract paragraph / reference captured on each contract provision.
- Keep the export with your quarter-end or year-end workpapers.
Frequently asked questions
Is this report a saved search? Can I edit its columns?
Yes. It is a saved search, so after running it the Edit this Search button is available. Before changing it, give the search a new title and click Save As to save a copy. Edits made directly to the bundled search can revert to the Netgain version on a future bundle update. See NetLease - Editing Reports in NetLease for the full steps, including creating a copy of the report that points to your new search.
Why is a lease with a purchase option missing from the report?
The report reads contract provision records, not the lease header. If the purchase option was never entered as a NetLease Contract Provision with the Contract Provision Type set to Lease Purchase Option, the lease will not appear. Also check that the Lease, Subsidiary and Lease Type filters do not exclude it.
Should I use the Contract Provision Type or the Sub-Type field?
Use Contract Provision Type. Lease Purchase Option is one of the primary provision types. The Sub-Type field only applies when the type is Other Contract Provision, and lists the other clause types (for example Guarantor or Permitted Use).
Does recording a purchase option change the lease schedule or classification?
No. A contract provision record captures the option for disclosure reporting and tracking. Checking Likely to Exercise on the contract provision does not adjust the lease's term or dates. Whether the lessee is reasonably certain to exercise a purchase option is answered separately by a lease classification criteria checkbox on the lease record, which feeds the calculated lease classification.
Can I get the results emailed to me on a schedule?
Yes. Because it is a saved search, email alerts and scheduled emails can be set up on the search. See NetLease - Set Up Email Reminders.
Troubleshooting
- No results - open a lease that should appear and check its Contract Provisions subtab for a contract provision with the Contract Provision Type set to Lease Purchase Option. If none exists, add one. See NetLease - Capturing Contract Provisions.
- A lease is missing - set Lease, Subsidiary and Lease Type to "All" and run the report again.
- Columns differ from this article - the search may have been customized in your account. Compare it to the bundled version or a saved copy.
