Inability to Specify IBR by Asset Class - Support Advisory

Issue

For private companies, FASB proposes that IBRs be configured by asset class, according to "Leases ((Topic 842)—Discount Rate for Lessees That Are Not Public Business Entities September 15, 2021". However, LeaseAccelerator doesn't support this kind of configuration.

Recommended Solution

Since LeaseAccelerator currently does not support configuration of IBRs by asset class (product category), to accommodate any customer that may have different IBRs for a single product category, we recommend the following steps to meet this requirement:

1. Use a deal specific IBR at inception. For renewals, use a modification in lieu of renewal, and apply IBR override.

2. Create separate Lessees by asset class (product category) to contain distinct IBRs. Use a common parent Lessee to capture all attributes other than IBR. If a single lease has assets belonging to different asset classes, separate into different lease schedules for each asset class.