Creating initial leases with local reporting

A lease accountant can create an initial lease record that includes local reporting with a different incremental borrowing rate than is used on the main standard for the lease.

1. Go to the Local Reporting tab. If the Accounting Standard = GAAP (FASB), the Local Reporting tab is IFRS16 (IASB), or vice versa.
2. Enter the Incremental Borrowing Rate for the local reporting schedule. It can be different from the value set on the Accounting tab.
3. For a GAAP lease, in the Lease Classification section, click Recalculate NPV.
   For an IFRS lease, answer the questions in the GAAP Classification section and click Calculate Lease Classification.

   Remember: If Local Reporting Required is selected the following are true on the Accounting tab:

   • If Accounting Standard = GAAP (FASB), Generate GAAP Schedule is available in the FASB Treatment section of the Accounting tab. If it is clicked, it only calculates the Accounting tab.
   • If Accounting Standard = IFRS (IASB), Generate IFRS Schedule is available in the IFRS Treatment section of the Accounting tab. If it is clicked, it only calculates the Accounting tab.
   • If Accounting Standard = GAAP (FASB), Generate Local IFRS Schedule is available in the Lease Classification section of the Local Reporting tab. If it is clicked, it only calculates the Local Reporting tab.
   • If Accounting Standard = IFRS (IASB), Generate Local GAAP Schedule is available in the GAAP Classification section of the Local Reporting tab. If it is clicked, it only calculates the Local Reporting tab.
   • For GASB Standard, Local Reporting is not applicable.