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Setup Reporting Entity, Select Accounting Standard, Initial Application Date, Local/Functional Currency, Add Location

These settings are available for users with the Administrator or Accounting Administrator Role.

• Reporting Entity: A Reporting Entity is the entity for which financial statements are produced. At least one Reporting Entity must be created in order to enter leases into LeaseCrunch. When creating a Reporting Entity, determine the following:
• Accounting Standard: FASB ASC 842 or IFRS 16 OR GASB 87, 94, or 96
• Initial Application Date: This is the date as of which the Reporting Entity will adopt the standard. Additional guidance below.
• Local Currency: Identify the local currency for the Reporting Entity. This is the currency used to pay lease obligations. (Does not apply to GASB)
• Functional Currency: Identify the functional currency for the Reporting Entity. This is usually either the local currency or the currency of its parent company. (Does not apply to GASB)

• Location: For each Reporting Entity, you have the option to add a Location. Locations can also be added from the Add Lease screen.

To Disable a Reporting Entity, an administrator can edit the entity and uncheck the Enabled checkbox. Navigate to Administration - Reporting Entity and click the blue pencil to edit the Reporting Entity.

Initial Application Date Guidance

When selecting the Initial Application Date, keep the following information in mind:

• The Initial Application Date is the first of the fiscal period in which you are adopting the standard. For most organizations following ASC 842, this is January 1, 2022. 
• What are incorrect Initial Application Date's? 
  • January 1, 1900
  • March 1, 1896
  • January 1, 2010
    
    
• For more information, and view this article about Initial Application Date.
• Use the Initial Application Date calculator to determine the correct Initial Application Date