Real Estate Portfolio Management / Lease Administration / Lease Portfolio / Extension for Lease Accounting

Set up Default Transition Dates and Other Preferences

Depending on whether your organization is public or private, or whether you need to comply with FASB guidance, IFRS guidance, or both, you may need to set up certain defaults for the Lease Classification Wizard. These settings determine how the Lease Classification Wizard operates.

Navigate to System Administration / ARCHIBUS System Administration / ARCHIBUS Administrator - Application Configuration / Configure Application Parameters.
Select the AbRPLMLeaseAdministration application.
Change the defaults for the following parameters if needed.

Date-Related Preferences

Application Parameter	Description
FASB842_DateOfInitialApplication	Specifies the beginning of FASB 842 retrospective period. This is the beginning of the earliest comparative period presented in financial statements in which the organization first applies this guidance. FASB specifies this as: For calendar year-end public companies this is 2017-01-01. For calendar year-end private companies this is 2019-01-01.
FASB842_EffectiveDate	This is the first date the ASC 842 guidelines take effect at your organization. FASB specifies this as: Q1 2019 for calendar year-end public companies Q1 2021 for calendar year-end private companies.
IFRS16_DateOfInitialApplication	Beginning of IFRS 16 retrospective period. This is the beginning of the earliest comparative period presented in financial statements in which the organization first applies this guidance.
IFRS16_EffectiveDate	The date IFRS 16 guidelines take effect at your organization. This is 2019-01-01, unless your organization adopts IFRS 15, in which case early adoption is permitted.

Note: On March 7, 2018, the FASB approved changes to the comparative reporting transition guidance. As part of these changes, organizations are no longer required to apply the new standard (including disclosure requirements) to comparative periods presented. Those periods can continue to be presented in accordance with current generally accepted accounting principles. To use this alternative accounting method, set your FASB842_DateOfInitialApplication preference to be the same as your FASB842_EffectiveDate, typically 2019-01-01 for public companies and 2020-01-01 for private companies.

Other Preferences

IFRS16_RetrospectiveApproach	For leases with a FASB/IASB Lease Type of "IASB Equipment" or "IASB Building or Land," the Step 1 tab presents the IASB Retrospective Method field. Set this parameter to "Full" if the organization uses the full retrospective approach. With this option, the Wizard sets IASB Retrospective Method to "Full" and the field is not editable for any lease. Set this parameter to "Modified" if your organization uses the modified retrospective approach. With this option, for each lease, you can set the IASB Retrospective Method field on the Wizard's Step 1 tab to one of these values: Modified Option 1 ROU - The program will retrospectively calculate the legacy lease schedule as if IFRS always applied, using an initial borrowing rate appropriate for the transition date. Modified Option 2 ILL - The program will calculate the remaining Lease Liability going forward from the Classification Date.
FASB842_UsePracticalExpedients	If your organization has adopted the ASC 842 "package of practical expedients" you do not need to reclassify legacy leases. Set this option to 1 if you have adopted the package of practical expedients; set to 0 if you have not adopted this package and want to run the standard classification process. The Wizard checks this value when classifying leases and if the package of practical expedients has been adopted and the lease is tagged as a legacy lease (Legacy Lease Classification field), the Wizard informs you that the lease is already classified as either operating or finance, depending on the case at hand. The IASB guidelines do not use practical expedients. If you are following IASB guidelines, set this value to 0.
IncrementalBorrowingRate-Lease	The default value that the Wizard presents for the Incremental Borrowing Rate on the Step 2 tab. You can set a new default value here; when you are working through the Wizard's Step 2 tab Wizard, you can change the default value established with this parameter.
OptTypesForROUAssetAdjustments	Enter a list of Option Types for options which have a cost that impacts the lease liability if the option is executed or reasonably certain to be executed.