NetLease - Weighted Average Rate Report
Overview
This search generates a summary calculation of the weighted average rates, which is a required footnote disclosure item.
Quantitative Disclosure Guidance
The following is the lease quantitative disclosure guidance that necessitates 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:
- Cash paid for amounts included in the measurement of lease liabilities, segregated between operating and financing cash flows
- Supplemental noncash information on lease liabilities arising from obtaining right-of-use assets
- Weighted-average remaining lease term
- Weighted-average discount rate
The following is an example of a Weighted Average Rate Summary in financial statements. The report in NetLease is intended to fulfill the disclosure requirement:
Navigation
NetLease > Reports > Disclosure Reports > Weighted Average Rate Report > Run
Filtering
The search can be refined by adjusting filters for subsidiary, consolidated exchange rate, department, class, location, lease, and/or period. After selecting the desired filters, click Preview to view the updated report:
Filter by the last full month of the reporting period. For example, for a Year-End 2022 disclosure, filter by 12/01/2022 to 12/31/2022.
Show FX Calculations Filter
This checkbox enables users to view lease balances in the lease currency, subsidiary currency, and consolidated currency. It also displays the exchange rates used to calculate these balances.
This option is useful for viewing and reconciling balances for leases that have undergone remeasurement or have been consolidated into a different subsidiary currency.
Results
When the report is run, the user will see the consolidated liability balance, consolidated undiscounted remaining payments, and the weighted average rate by liability balance for the period, broken down by lease type. Lease types can be expanded to view individual leases and their detailed information. To download the report in Excel, select the Export button:
Troubleshooting
If the desired lease is not appearing, verify that the lease status is not set to "Pending" and that the lease has not been marked as inactive.
If the exchange rate does not appear as expected, review the selection in the "Consolidated Exchange Rate" filter. The exchange rates used in the report can be configured by adjusting the filter to one of the following options:
- Average – Based on the average currency exchange rate effective over the filtered period.
- Current – Based on the currency exchange rate effective at the end of the reported period.
- Historical (From Date) – Based on the currency exchange rate effective at the start of the reported period.
- Custom – The exchange rate is pulled as of the date entered in the "Consolidated Exchange Rate Date" field.
- None – No consolidation occurs; values are pulled directly from the subledger in the contract currency of the lease, regardless of the selected currency.