Real Property / Leases / Lease Portfolio / Lease Classification Wizard

Working with the Lease Classification Wizard

Before running the Real Property / Leases / Lease Portfolio / Lease Classification Wizard, review this topic for general information about using the Wizard.

This topic has the following sections:

Access the Wizard

Use these methods to access the Lease Classification Wizard:

Check the Current Status and Current Classification

At the top of the Wizard's Step 1 tab, you will find important information about the current classification.

The Wizard presents the following key fields about the lease classification:

Field Description
FASB/IASB Review Status

The value for FASB/IASB Review Status describes whether or not the lease has been classified. The Wizard sets this one of the following:

  • Unclassified -- You have not yet classified the lease. If you start the Wizard and do not work completely through it, the status remains as Unclassified.
  • Pending -- You have finished working through the Wizard and have classified the lease and routed it to a lease administrator or property manager for approval.
  • Approved -- The classification has been approved.
  • Under Re-evaluation -- The original lease was classified and approved, but you are re-evaluating the classification. (The user invoked the Restart Wizard button.)
FASB/IASB Lease Type

The FASB/IASB Lease Type value describes the type of lease (building, equipment, land, and so on).

If you have not yet set this option, the Wizard sets it to Pending. You must change this value from Pending in order to work through the Wizard.

FASB/IASB Lease Classification

The Wizard sets this as: 

  • Unclassified - You have not yet started the classification process.
  • Pending -- You have started but not yet completed the classification process. The Wizard does not yet have the information it needs to classify the lease.
  • Finance -- You have previously worked through the Wizard to classify the lease, and the Wizard has determined that this is a finance lease.
  • Operating -- You have previously worked through the Wizard to classify the lease, and the Wizard has determined that this is an operating lease.

As you work through the Wizard's questions, you will find that some responses automatically trigger the Wizard to update the FASB/IASB Lease Classification field with "Operating" or "Finance" even though you are still working through the questions. As you continue working with the Wizard, this value might change as you complete additional questions or the Wizard makes calculations.

IASB Retrospective Method If you choose "IASB Equipment" or "IASB Building and Land" as the Lease Type, you can set the Retrospective Method. See the discussion on the Step 1 tab.

Complete the Wizard's Questions and Fields

Depending on the FASB/IASB Lease Type value of the selected lease, the Wizard presents the appropriate set of questions. The Wizard organizes the questions into a series of tabs:  

As you complete the questions on the Step 1 tab, the Wizard determines the next set of questions to present on the next tab. Depending on how you respond to these questions, you are guided to a tab with the next set of questions.

Note the following about completing fields:

Get Quick Help from the Information Buttons

As you work through the Wizard's tabs, you can access further details about each question by clicking the question's "i" button.

Select the Information button, and the system displays a pop-up with an explanation of completing the question. The explanation text derives from FASB publications.

Since the Information buttons provide context help for each option, the online help file does not provide extensive reference material on each option. If you need information on a question or option on the Wizard's forms, simply choose the option's "I" button.

Move through the Wizard with Action Buttons

Each of the Wizard's tabs contains an action button in the upper right corner so that you can work through the Wizard. The buttons change as you work through the tabs.

The Wizard has these buttons:

Button Action

Step 1 Done

When you complete the questions on the tab, choose this button to mark the tab as done and have the Wizard move to the Step 2 tab.

The wizard recalculates the amortization schedule and updates the ls.class_wiz_step1_done field.

Step 2 Done

When you complete the second tab, choose this button to mark the tab as done and have the Wizard move to the Step 3 tab.

The wizard recalculates the amortization schedule and updates the ls.class_wiz_step2_done field.

Step 3 Done

When you complete the third tab, choose this button to mark the tab as done. The wizard recalculates the amortization schedule.

If you have edited or changed a right-of-use option, the system moves you to the Step 2 tab so that you can review the new value and make further adjustments if necessary.

Otherwise, the Wizard updates the ls.class_wiz_step3_done field, and presents the Restart Wizard and Submit for Approval buttons.

Mark as Done

For land-only leases, this button appears on the first (and only) tab.

The system updatesls.class_wiz_step3_done field, and presents the Restart Wizard and Submit for Approval buttons.

Recalculate Amortization Schedule At any time when working with the Wizard, you can choose this button to have the Wizard recalculate the amortization schedule. The Wizard automatically recalculates the schedule when you complete the Step 1 Done and Step 2 Done buttons. Use this button to run the recalculations at any time.
Restart Wizard

If you have selected Mark as Done but have not yet submitted the lease classification for approval, you can select this button to return to the tabs and change your responses. You can then continue working through the tabs.

When you choose this button, the system sets the following fields to No:

ls.class_wiz_step1_done

ls.class_wiz_step2_done

ls.class_wiz_step3_done

Submit for Approval

After you complete the classification of a lease and choose the Step Done button, the Wizard presents the Submit for Approval button. This indicates that the classification is complete and the lease is ready for approval.

Selecting this button sets ls.fasb_workflow_status to Submitted for Approval.

Approve buttons If you have approval access, there are additional buttons. See Approving Classified Leases.
  • Access the Wizard's Reports

    For the current lease, use these buttons to access additional information about the lease or its current classification.

    Button Description
    Audit Log

    Presents the Lease Classification Audit Log report.

    Amortization

    Presents the Amortization Schedule.

    Subledger

    Presents the Subledger Report.

    Expense Comparison Presents the Expense Comparison Chart
    Profile Presents the Lease Profile report, so that you can check details of the lease in a formatted report. You develop the information presented in this report using the Lease Portfolio Console. See Lease Profile.
    Details Presents the information developed using the Lease Portfolio Console. Whereas the Lease Profile report presents information in a formatted report, this button presents just the data, without images and formatting. See Lease Details.

    Outcome

    At the end of classifying a lease, you have accomplished the following:

    Next Steps

    Selecting a Lease

    Classifying a Lease: Step 1

    Classifying a Lease: Step 2

    Classifying a Lease: Step 3 (Adjustments to Right-of-Use Options)