NetLease - Weighted Average Rate Report

Overview

This search provides a summary calculation of weighted average rate which are required footnote disclosure items.

Quantitative Disclosure Guidance

Below is the lease quantitative disclosure guidance that mandates this report. 

ASC 842-20-50-4 For each period presented in the financial statements, a lessee shall disclose the following amounts relating to a lessee’s total lease cost, which includes both amounts recognized in profit or loss during the period and any amounts capitalized as part of the cost of another asset in accordance with other Topics, and the cash flows arising from lease transactions:

a. Finance lease cost, segregated between the amortization of the right-of-use assets and interest on the lease liabilities. 

b. Operating lease cost determined in accordance with paragraphs 842-20-25-6(a) and 842-20-25-7. 

c. Short-term lease cost, excluding expenses relating to leases with a lease term of one month or less, determined in accordance with paragraph 842-20-25-2. 

d. Variable lease cost determined in accordance with paragraphs 842-20-25-5(b) and 842-20-25- 6(b). 

e. Sublease income, disclosed on a gross basis, separate from the finance or operating lease expense. 

f. Net gain or loss recognized from sale and leaseback transactions in accordance with paragraph 842-40-25-4. 

g. Amounts segregated between those for finance and operating leases for the following items: 

1. Cash paid for amounts included in the measurement of lease liabilities, segregated between operating and financing cash flows 
2. Supplemental noncash information on lease liabilities arising from obtaining right-of-use assets 
3. Weighted-average remaining lease term
4. Weighted-average discount rate

Below is an example of a Weighted Average Rate Summary in Financial Statements. This report within NetLease is meant to satisfy the disclosure. 

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Step by Step Process

Navigation:

NetLease > Reports  > Disclosure Reports > Weighted Average Rate Report > Run

Filtering:

The search can be narrowed down by adjusting the filters for subsidiary, consolidated exchange rate, department, class, location, lease, and/or period. Once desired filters are set, click preview to view the updated report. View full size

Results

Upon running the report the user will see the consolidated liability balance, consolidated undiscounted remaining payments, and weighted average rate by liability balance for the period by lease type. The lease types can be expanded to drill down to the individual lease and underlying information.  Select the export button to download report into Excel. View full size

Troubleshooting

1. If desired lease is not appearing, confirm that the lease status is not Pending and the lease has not been marked as inactive. 
2. If the exchange rate is not as expected, review the selection under "Consolidated Exchange Rate." The exchange rates that will be used for the report can be set by updating the Consolidated Exchange Rate filter to the following:
   1. Average - Based on the average currency exchange rate that is effective over the filtered period. 
   2. Current - Based on the currency exchange rate that is effective at the end of the reported upon period.
   3. Historical (From Date) - Based on the currency exchange rate that is effective at the start of the reported upon period.
   4. Custom - The exchange rate is pulled as of the date entered by the user in the Consolidated Exchange Rate Date field.
   5. None - No consolidation occurs. Uses values directly from the subledger which are in the contract currency of the lease regardless of what currency is selected.