The Existing Balances under Previous Lease Guidance section will only appear under Step 2: Lease Payments & Classification when entering a transition lease. For more information on transition leases, click here.
Transition leases are those that were in place prior to the adoption of the new standard and in the software. When entering a transition lease, the Start Date of the transition lease is entered as the same day as the Initial Application Date, not before. The start date is populated under Step 1: Description & Term of when manually adding a lease or when using the Bulk Import Template.
When the Start Date of a lease matches the Initial Application Date of the corresponding Reporting Entity, the software prohibits the entry of initial Lease Incentives and Initial Direct Costs and routes entry of any pre-existing balances to Existing Balances under Previous Lease Guidance. Existing Balances are those balances in place on the balance sheet as of the Initial Application Date and entered as a positive number.
If it is determined that the reason the system doesn't recognize a transition lease is because of an incorrect Initial Application Date, click here for instructions on what to do if the Initial Application Date is entered incorrectly.