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Inability to Override IBR on Either Transition or Renewal - Support Advisory

Issue

There is an inability to override an IBR on either transition or renewal within the system.

Recommended Solution

A modification must be recorded to enable IBR override.

The customer may perform analysis of materiality impact under different IBR's.

  • For Cap-Op leases, it will not impact P&L. It will only impact amount capitalized on the balance sheet, so threshold may be high for materiality.

  • For Finance leases, it will impact depreciation and interest which should be compared under both IBR's.

Note: Consider the impact of IBR difference on lease classification.

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