The FASB ASC 842 and IASB regulations enumerate a series of requirements for which the ARCHIBUS includes specific provisions. The table below overviews the functional activities that compliance teams must consider and the ARCHIBUS provisions that meet the new requirements.
| Requirement | ARCHIBUS Feature | ARCHIBUS Form or Report |
|---|---|---|
| Provide structured data collection to support new lease decisions. |
ARCHIBUS provides an interactive questionnaire to gather the specific elements required by ASC 842 in a structured manner that supports stakeholder reports and analyses. These elements include lease term, automatic transfer of ownership, useful life of the asset, fair market value of the asset, designated parking spaces, and whether the facility is specialized to purpose. |
Lease Classification Wizard |
| Provide structured cost collection for capitalized costs. | If a lease meets guidelines for capitalization, the interactive questionnaire also collects supporting data such as discount rate, incremental borrowing rate, initial direct cost, CPI escalations, landlord allowances, and impairment costs. |
Lease Classification Wizard |
| Classify leases as finance or operating leases. |
The collected lease data provides the basis for classification whether a lease transfers effective control of the asset to the lessee, or is a specialized facility. The program calculates key ratios to support the classification, such as the ratio of the present value of applicable lease payments to the fair market value |
Lease Classification Wizard |
| Document options and assumptions that determine whether option renewal is “reasonably certain.” | The lease options include structures for documenting purchase options, economic incentives to renew, and comparison of rent to market rate. |
Lease Classification Wizard |
| Review the financial structure of the lease in overview. | Summary reports present the schedule of charges, such as the value of the right-to-use asset and lease liability over the least term. |
Lease Classification Analysis Console |
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