LTO Assets for Adoption (LM703)

The Transition Report will provide information on the Leases that ASU842 will address. Finance Leases and Short term operating leases will not be reported here because there is no change required for those lease types pre-adoption.

Transition Report (LM703)

Report Option -M- The Missing Asset report will provide a report on all the Operating leases greater than 12 months that are active within the date range listed in the Lease Date Range field that are missing an Asset. An Asset is required on all long term operating leases at the time of adoption. This report will provide the user the ability to add the asset in preparation for adoption.

This report displays all the assets that will be out of compliance as of the adoption date because they will be long term operating leases and have no asset attached.

The thought is that by using this report as a guide the user will be able to pinpoint the leases that need to be edited to make a smooth transition.

After the report is obtained, the user would go to the Lease Addition and Adjustments screen (LM21) and add the asset. When the report is run again after the addition of the asset that specific lease will no longer display on the report. The goal would be to have no remaining leases displaying on the Missing Asset report on the day of adoption.