Remeasurement - Common Procedure

Re-measurement is the process by which an entity will adjust the right of use asset and lease liability due to a change. Generally, re-measurement occurs if something has changed in the contract. Maybe the termination option was renegotiated, or maybe additional costs came up that needed to be added to the contract.

Learn about recalculation due to Late Amendments.

Contracts

The following procedures teach you how to remeasure a schedule in the Contract module.

When an active schedule is recalculated or terminated, the Inactive Date of the previously active schedule will automatically populate with the date of recalculation or termination.

Re-Measure Your Straight Line Schedule

Proration is disabled in the first period of a re-measured Straight Line schedule, because doing so changes the total obligation.

To re-measure a lease accounting schedule:

Navigate to Contract > Accounting Info > Straight-Line Rent.

Use the links in the Navigation Pane on the leftmost side of the page.
Click Calculate Schedule.

This displays in the Actions menu on the right side of the page.

A window relevant to the schedule you are re-measuring opens.
Enter the Begin Date and End Date of the accounting schedule.

Select Calendar to open the date picker.
Select the schedule type from the Type field.
If you have a balance forward that you need to account for:
1. Enter the balance forward in the Balance Forward field.
2. Select whether you want to amortize your adjustments over the remaining term or as a lump sum from the Amortize Adjustments field.
Select the reason for creating the schedule from the Creation Reason field.

Creation reasons are either user-generated or generated at the company level. However, all creation reasons created at the user level will also be available at the company level.
Enter notes in the Notes field.
Click Create Schedule.

The window closes, and the page refreshes. Your new schedule appears in the Straight-Line Summary List.

Re-Measure Your ASC 842 Schedule

To re-measure a lease accounting schedule:

Do one of the following:
- Navigate to Contract > Accounting Info > Accounting Assumptions
- Navigate to Contract > Accounting Info > ASC 842 Rent Schedule
  
  Use the links in the Navigation Pane on the leftmost side of the page.
Click Calculate Schedule.

This displays in the Actions menu on the right side of the page.

A window relevant to the schedule you are re-measuring opens.
Enter the dates that your re-measurement should begin and end in the Begin Date and End Date fields.

Select Calendar to open the date picker.

The default value of the Schedule Begin Date is the later of the Accounting Begin Date or the first day of the first unposted period for the schedule. You can override the value of the Schedule Begin Date in the Create Schedule window, provided the date you choose is on or after the first day of the first unposted period.
Select the schedule type from the Type field.
Select the creation reason from the Creation Reason field.
Select the lease type from the Lease Type field.

Creation reasons are either user-generated or generated at the company level. However, all creation reasons created at the user level will also be available at the company level.

The data from the existing schedule populates. If there are any posted periods between the Accounting Begin Date and the Accounting End Date, the Re-measurement Balance Forward will automatically calculate the re-measurement balance forward for those posted periods.
Make any changes necessary to the discount rate, the liability values, and the right of use asset values prior to re-measurement.

To learn how to select a different discount rate from the Manage Discount Rates table, see our Search for Another Discount Rate article.
Click Create Schedule.

The window closes, and the ASC 842 Rent Schedule page refreshes. The re-measured schedule appears in your ASC 842 Rent Schedule List.

Re-Measure Your GASB 87 Schedule

To re-measure a lease accounting schedule:

Do one of the following:
- Navigate to Contract > Accounting Info > Accounting Assumptions , then select GASB 87 Accounting Assumptions from the field to the left side of the Actions menu on the right side of the page.
- Navigate to Contract > Accounting Info > GASB 87 Rent Schedule.
  
  Use the links in the Navigation Pane on the leftmost side of the page.
Click Calculate Schedule.

This displays in the Actions menu on the right side of the page.

A window relevant to the schedule you are re-measuring opens.
Enter the dates that your re-measurement should begin and end in the Begin Date and End Date fields.

Select Calendar to open the date picker.

The default value of the Schedule Begin Date is the later of the Accounting Begin Date or the first day of the first unposted period for the schedule. You can override the value of the Schedule Begin Date in the Create Schedule window, provided the date you choose is on or after the first day of the first unposted period.
Select the schedule type from the Type field.
Select the creation reason from the Creation Reason field.

Creation reasons are either user-generated or generated at the company level. However, all creation reasons created at the user level will also be available at the company level.
Select the lease type from the Lease Type field.

The data from the existing schedule populates. If there are any posted periods between the Begin Date and the End Date, the Re-measurement Balance Forward will automatically calculate the re-measurement balance forward for those posted periods.
Make any changes necessary to the discount rate, the liability values, and the right of use asset values prior to re-measurement.

To learn how to select a different discount rate from the Manage Discount Rates table, see our Search for Another Discount Rate article.
Click Create Schedule.

The window closes, and the page refreshes. The re-measured schedule appears in your GASB 87 Rent Schedule List on the GASB 87 Rent Schedule page.

Re-Measure Your IFRS 16 Schedule

To re-measure a lease accounting schedule:

Do one of the following:
- Navigate to Contract > Accounting Info > Accounting Assumptions , then select IFRS 16 Accounting Assumptions from the field to the left side of the Actions menu on the right side of the page.
- Navigate to Contract > Accounting Info > IFRS 16 Rent Schedule.
  
  Use the links in the Navigation Pane on the leftmost side of the page.
Click Calculate Schedule.

This displays in the Actions menu on the right side of the page.

A window relevant to the schedule you are re-measuring opens.
Enter the dates that your re-measurement should begin and end in the Begin Date and End Date fields.

Select Calendar to open the date picker.

The default value of the Schedule Begin Date is the later of the Accounting Begin Date or the first day of the first unposted period for the schedule. You can override the value of the Schedule Begin Date in the Create Schedule window, provided the date you choose is on or after the first day of the first unposted period.
Select the schedule type from the Type field.
Select the creation reason from the Creation Reason field.

Creation reasons are either user-generated or generated at the company level. However, all creation reasons created at the user level will also be available at the company level.
Select the lease type from the Lease Type field.

The data from the existing schedule populates. If there are any posted periods between the Begin Date and the End Date, the Re-measurement Balance Forward will automatically calculate the re-measurement balance forward for those posted periods.
Make any changes necessary to the discount rate, the liability values, and the right of use asset values prior to re-measurement.

To learn how to select a different discount rate from the Manage Discount Rates table, see our Search for Another Discount Rate article.
Click Create Schedule.

The window closes, and the page refreshes. The re-measured schedule appears in your IFRS 16 Rent Schedule List on the IFRS 16 Rent Schedule page.

Equipment Contracts

The following procedures teach you how to remeasure a schedule in the Equipment Contract module.

Contract-Level

In the Equipment Contract module, you can remeasure schedules at the contract-level or the asset-level. These procedures teach you how to remeasure schedules at the contract-level.

When an active schedule is recalculated or terminated, the Inactive Date of the previously active schedule will automatically populate with the date of recalculation or termination.

(Contract Only) Re-measure Your Straight Line Schedule

Proration is disabled in the first period of a re-measured Straight Line schedule, because doing so changes the total obligation.

To re-measure a straight line schedule:

Click Calculate Schedule.

This displays in the Actions menu on the right side of the page.

The Create New Straight-Line Schedule window opens.
Enter the Begin Date and End Date of the accounting schedule.

Select Calendar to open the date picker.
Select the schedule type from the Type field.
If you have a balance forward that you need to account for:
1. Enter the balance forward in the Balance Forward field.
2. Select whether you want to amortize your adjustments over the remaining term or as a lump sum from the Amortize Adjustments field.
Select the reason for creating the schedule from the Creation Reason field.

Creation reasons are either user-generated or generated at the company level. However, all creation reasons created at the user level will also be available at the company level.
Enter notes in the Notes field.
Click Create Schedule.

The window closes, and the page refreshes. Your new schedule appears in the Straight-Line Summary List.

Re-measure Your ASC 842 Contract Schedule

To re-measure a lease accounting schedule:

Navigate to one of the four following pages:
- Equipment Contract > Accounting Info > ASC 842 Test
- Equipment Contract > Accounting Info > Accounting Assumptions
- Equipment Contract > Accounting Info > ASC 842 Rent Schedule
- Equipment Contract > Accounting Info > ASC 842 Rent Schedule, then select ASC 842 Equipment Schedules from the field to the left of the Actions menu.
  
  The ASC 842 Equipment Schedules page opens. The schedule data appears on the page.
  
  Use the links in the Navigation Pane on the leftmost side of the page.
Click Calculate Schedule.

This displays in the Actions menu on the right side of the page.

The Create New ASC 842 Rent Schedule window opens.
Enter the dates that your re-measurement should begin and end in the Begin Date and End Date fields.

Select Calendar to open the date picker.

The default value of the Schedule Begin Date is the later of the Accounting Begin Date or the first day of the first unposted period for the schedule. You can override the value of the Schedule Begin Date in the Create Schedule window, provided the date you choose is on or after the first day of the first unposted period.
Select the schedule type from the Type field.
Select the creation reason from the Creation Reason field.

Creation reasons are either user-generated or generated at the company level. However, all creation reasons created at the user level will also be available at the company level.
Select the accounting method from the Accounting Method field.

The data from the existing schedule populates. If there are any posted periods between the Begin Date and the End Date, the Re-measurement Balance Forward will automatically calculate the re-measurement balance forward for those posted periods.
Make any changes necessary to the discount rate, the liability values, and the right of use asset values prior to re-measurement.

To learn how to select a different discount rate from the Manage Discount Rates table, see our Search for Another Discount Rate article.
Enter notes in the Notes field.
Click Create Schedule.

The window closes, and the Create New ASC 842 Rent Schedule page refreshes. The re-measured schedule appears in your ASC 842 Rent Schedule List.

Re-measure Your GASB 87 Contract Schedule

To re-measure a lease accounting schedule:

Navigate to one of the three following pages.

Use the links in the Navigation Pane on the leftmost side of the page.
- Equipment Contract > Accounting Info > GASB 87 Rent Schedule
- Equipment Contract > Accounting Info > GASB 87 Rent Schedule, then select GASB 87 Equipment Schedules from the field to the left of the Actions menu.
  
  The GASB 87 Equipment Schedules page opens. The schedule data appears on the page.
- Equipment Contract > Accounting Info > Accounting Assumptions, then select GASB 87 Accounting Assumptions from the field to the left of the Actions menu.
  
  The GASB 87 Accounting Assumptions page opens.
Click Calculate Schedule.

This displays in the Actions menu on the right side of the page.

The Create New GASB 87 Rent Schedule window opens.
Enter the dates that your re-measurement should begin and end in the Begin Date and End Date fields.

Select Calendar to open the date picker.

The default value of the Schedule Begin Date is the later of the Accounting Begin Date or the first day of the first unposted period for the schedule. You can override the value of the Schedule Begin Date in the Create Schedule window, provided the date you choose is on or after the first day of the first unposted period.
Select the schedule type from the Type field.

The data from the existing schedule populates. If there are any posted periods between the Begin Date and the End Date, the Re-measurement Balance Forward will automatically calculate the re-measurement balance forward for those posted periods.
Select the creation reason from the Creation Reason field.

Creation reasons are either user-generated or generated at the company level. However, all creation reasons created at the user level will also be available at the company level.
Make any changes necessary to the discount rate, the liability values, and the right of use asset values prior to re-measurement.

To learn how to select a different discount rate from the Manage Discount Rates table, see our Search for Another Discount Rate article.
Enter notes in the Notes field.
Click Create Schedule.

The window closes, and the Create New GASB 87 Rent Schedule page refreshes. The re-measured schedule appears in your GASB 87 Rent Schedule List.

Re-measure Your IFRS 16 Contract Schedule

To re-measure a lease accounting schedule:

Navigate to one of the three following pages.

Use the links in the Navigation Pane on the leftmost side of the page.
- Equipment Contract > Accounting Info > IFRS 16 Rent Schedule
- Equipment Contract > Accounting Info > IFRS 16 Rent Schedule, then select IFRS 16 Equipment Schedules from the field to the left of the Actions menu.
  
  The IFRS 16 Equipment Schedules page opens. The schedule data appears on the page.
- Equipment Contract > Accounting Info > Accounting Assumptions, then select IFRS 16 Accounting Assumptions from the field to the left of the Actions menu.
  
  The IFRS 16 Accounting Assumptions page opens.
Click Calculate Schedule.

This displays in the Actions menu on the right side of the page.

The Create New IFRS 16 Rent Schedule window opens.
Enter the dates that your re-measurement should begin and end in the Begin Date and End Date fields.

Select Calendar to open the date picker.

The default value of the Schedule Begin Date is the later of the Accounting Begin Date or the first day of the first unposted period for the schedule. You can override the value of the Schedule Begin Date in the Create Schedule window, provided the date you choose is on or after the first day of the first unposted period.
Select the schedule type from the Type field.

The data from the existing schedule populates. If there are any posted periods between the Begin Date and the End Date, the Re-measurement Balance Forward will automatically calculate the re-measurement balance forward for those posted periods.
Select the creation reason from the Creation Reason field.

Creation reasons are either user-generated or generated at the company level. However, all creation reasons created at the user level will also be available at the company level.
Make any changes necessary to the discount rate, the liability values, and the right of use asset values prior to re-measurement.

To learn how to select a different discount rate from the Manage Discount Rates table, see our Search for Another Discount Rate article.
Enter notes in the Notes field.
Click Create Schedule.

The window closes, and the Create New IFRS 16 Rent Schedule page refreshes. The re-measured schedule appears in your IFRS 16 Rent Schedule List.

Asset-Level

In the Equipment Contract module, you can remeasure schedules at the contract-level or the asset-level. These procedures teach you how to remeasure schedules at the asset-level.

When an active schedule is recalculated or terminated, the Inactive Date of the previously active schedule will automatically populate with the date of recalculation or termination.

Re-measure Your ASC 842 Asset Schedules

In order to calculate an equipment schedule for ASC 842, you must first meet one of three prerequisites:

You must populate the Accounting Method Override on the Equipment Assumptions / ASC 842 Tests page.
You must populate the Fair Value of the Asset, the Portion of Asset Controlled and Remaining Economic Life/Units on the Equipment Assumptions / ASC 842 Tests page.

If the system finds the proper values, it will generate a locked test. The system generates a locked test to prevent you from editing the test and causing the test to be out of sync with the lease accounting schedule.
You must run and LOCK an Equipment Classification Test.

If none of these three prerequisites are met, a message appears in the log file of the event in the Job Log that says: Unable to find current, locked ASC 842 test result. Cannot generate schedule.

To re-measure your ASC 842 asset schedules:

Navigate to one of the four following pages:
- Equipment Contract > Accounting Info > ASC 842 Test
- Equipment Contract > Accounting Info > Accounting Assumptions
- Equipment Contract > Accounting Info > ASC 842 Rent Schedule
- Equipment Contract > Accounting Info > ASC 842 Rent Schedule, then select ASC 842 Equipment Schedules from the field to the left of the Actions menu.
  
  The ASC 842 Equipment Schedules page opens. The schedule data appears on the page.
  
  Use the links in the Navigation Pane on the leftmost side of the page.
Click Calculate Schedule.

This displays in the Actions menu on the right side of the page.

The Create New ASC 842 Rent Schedule window opens.
Select the Create Equipment Schedule tab.
Select the schedule type you want to re-measure from the Type field.
Select the creation reason from the Creation Reason field.

Creation reasons are either user-generated or generated at the company level. However, all creation reasons created at the user level will also be available at the company level.

The Discount Rate pre-populates with the default discount rate. Modify the value in the Discount Rate if necessary. To learn how to select a different discount rate from the Manage Discount Rates table, see our Search for Another Discount Rate article.
Click Create Schedule.

The page refreshes, and the schedule is created. You will receive an email confirmation.

If more than one of your assets have had the value of their Operational Status change to something other than Active, a dialog box will open, with a message that reads: Since last schedule creation, some assets have changed to non-Active status. Do you want to terminate the asset schedules for them? To learn more about bulk termination, see the Asset Schedule Termination > Bulk Termination section below.
Select ASC 842 Equipment Schedules from the field to the left of the Actions menu.

The ASC 842 Equipment Schedules page opens. The schedule data appears on the page.

Re-measure Your GASB 87 Asset Schedules

To re-measure your GASB 87 asset schedules:

Navigate to one of the three following pages.

Use the links in the Navigation Pane on the leftmost side of the page.
- Equipment Contract > Accounting Info > GASB 87 Rent Schedule
- Equipment Contract > Accounting Info > GASB 87 Rent Schedule, then select GASB 87 Equipment Schedules from the field to the left of the Actions menu.
  
  The GASB 87 Equipment Schedules page opens. The schedule data appears on the page.
- Equipment Contract > Accounting Info > Accounting Assumptions, then select GASB 87 Accounting Assumptions from the field to the left of the Actions menu.
  
  The GASB 87 Accounting Assumptions page opens.
Click Calculate Schedule in the Actions menu on the right side of the page.

The Create New GASB 87 Rent Schedule window opens.
Select the Create Equipment Schedule tab.
Select the schedule type you want to re-measure from the Type field.
Select the creation reason from the Creation Reason field.

Creation reasons are either user-generated or generated at the company level. However, all creation reasons created at the user level will also be available at the company level.

The Discount Rate pre-populates with the default discount rate. Modify the value in the Discount Rate if necessary.

To learn how to select a different discount rate from the Manage Discount Rates table, see our Search for Another Discount Rate article.
Click Create Schedule.

The page refreshes, and the schedule is created. You will receive an email confirmation.

If more than one of your assets have had the value of their Operational Status change to something other than Active, a dialog box will open, with a message that reads: Since last schedule creation, some assets have changed to non-Active status. Do you want to terminate the asset schedules for them? To learn more about bulk termination, see the Asset Schedule Termination > Bulk Termination section below.
Select GASB 87 Equipment Schedules from the field to the left of the Actions menu.

The GASB 87 Equipment Schedules page opens. The schedule data appears on the page.

Re-measure Your IFRS 16 Asset Schedules

To re-measure your IFRS 16 asset schedules:

Navigate to one of the three following pages.

Use the links in the Navigation Pane on the leftmost side of the page.
- Equipment Contract > Accounting Info > IFRS 16 Rent Schedule
- Equipment Contract > Accounting Info > IFRS 16 Rent Schedule, then select IFRS 16 Equipment Schedules from the field to the left of the Actions menu.
  
  The IFRS 16 Equipment Schedules page opens. The schedule data appears on the page.
- Equipment Contract > Accounting Info > Accounting Assumptions, then select IFRS 16 Accounting Assumptions from the field to the left of the Actions menu.
  
  The IFRS 16 Accounting Assumptions page opens.
Click Calculate Schedule in the Actions menu on the right side of the page.

The Create New IFRS 16 Rent Schedule window opens.
Select the Create Equipment Schedule tab.
Select the schedule type you want to re-measure from the Type field.
Select the creation reason from the Creation Reason field.

Creation reasons are either user-generated or generated at the company level. However, all creation reasons created at the user level will also be available at the company level.

The Discount Rate pre-populates with the default discount rate. Modify the value in the Discount Rate if necessary. To learn how to select a different discount rate from the Manage Discount Rates table, see our Search for Another Discount Rate article.
Click Create Schedule.

The page refreshes, and the schedule is created. You will receive an email confirmation.

If more than one of your assets have had the value of their Operational Status change to something other than Active, a dialog box will open, with a message that reads: Since last schedule creation, some assets have changed to non-Active status. Do you want to terminate the asset schedules for them? To learn more about bulk termination, see the Asset Schedule Termination > Bulk Termination section below.
Select IFRS 16 Equipment Schedules from the field to the left of the Actions menu.

The IFRS 16 Equipment Schedules page opens. The schedule data appears on the page.