E1: 15: Create a Lease Accounting UBE to Address Current and Non-Current Portions of Right of Use Assets and Lease Liabilities - Create Current and Non-Current Journals (R15190)
(Doc ID 2454013.1)
Last updated on OCTOBER 05, 2022
Applies to:JD Edwards EnterpriseOne Real Estate Management - Version 9.1 to 9.2 [Release 9.1 to 9.2]
Information in this document applies to any platform.
Legislatively, there is a requirement to split the current and non-current portions of right-of-use assets and lease liabilities. From FASB 842:
Right-of-use assets and lease liabilities shall be subject to the same considerations as other nonfinancial assets and financial liabilities in
classifying them as current and noncurrent in classified statements of financial position.
To accommodate this requirement, create a report that shows the same information as the lease amortization schedule, with the ability to
optionally generate reclassify journal entries at the ned of the fiscal period. The reclassify journal entries would split the right-of-use asset and
the lease liability into current and non-current portions. Make the reclassify a reversing entry.
At any particular point in the life of the lease, the current portion may be calculated from the next yearâ€™s (usually 12 accounting periods) Reduction
Amount. The non-current portion is all remaining periods in the amortization schedule.
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