If you are working with a lease whose FASB Lease Type is Land Only, the Wizard presents only one tab. The tab has the following questions.
- Is there automatic transfer of ownership
- Is there a reasonably certain purchase option?
For example, in the above image, the user has set both questions to No and the Wizard has presented a confirmation message that capitalization is not required. The user can now select the Mark as Done button.
Click Mark as Done and the Wizard:
- sets FASB/IASB Review Status to Pending
- sets FASB/IASB Workflow Status to Submitted for Approval
- sets FASB/IASB Lease Classification to Operating
- displays the Submit for Approval and Restart Wizard buttons. You can now route the lease classification for approval.
If you set one of these option to Yes, the lease will be classified as a finance lease that needs to be capitalized. Therefore, the Wizard adds the right-of-use adjustment questions directly to the Questionnaire form.
