If your Agreement meets the definition of a lease as defined in IFRS 16, toggle the bar to read YES.

If your answer is NO, the agreement falls outside of the scope of IFRS 16 and won't be included in your reporting. 

By default, if the previous question is toggled YES, this question will also be toggled YES, and the Agreement will be included in IFRS 16 reporting. 

If, for any reason, you don't want to include an Agreement in your reports, you can exclude it by toggling this bar to NO. 

Exempt Agreements are excluded from your overall portfolio balances but will still appear in your reports, displayed differently to indicate their exempt status. You must still complete the interest rate and number of renewals to factor in (as shown in the questions below) for this to apply correctly. 

Once completed, and if your Agreement falls within one of the scope exemptions, toggle this question to YES and select either Low Value or Short Term as the Exemption Reason. 

The Exemption Description text field can be used to record any explanatory notes. 

Record the discount rate that's used to determine the present value of future lease payments. 

You only need to record the interest rate in the field that corresponds with your selected transition method. 

Select how many renewals you're reasonably certain to exercise under this agreement, as at the Commencement or Transition date of your agreement. The scale on the questionnaire is based on the number of renewals you've onboarded in your agreement. 

Your IFRS reports will only generate up to the date that corresponds with the number of renewals you've selected. If you don't make a selection here, your IFRS reports by default will generate up until the expiry of the Initial Term for this Agreement.

If you've already completed a renewal event on the agreement timeline, this will be greyed out and will not be able to be selected as it is historic. You must select one of the remaining available options. 

To check the total number of available renewals you have for an agreement, you can look at the Agreement Timeline or Events page.

If, after your Commencement or Transition Date, there is a change to your Organisation's original assumptions about how many renewals you expect to exercise, you can update them on the Agreement Timeline using IFRS Settings Change Questionnaire. For information on how to do this, click here.

If your agreement contains a non-lease component that is normally paid for as part of the rent payment, you can choose to account for this separately by toggling this question to YES, then record the amount to be accounted for separately.
The Amount allocated to the non lease component will not be included in the lease liability for this agreement. 

If you took control of the asset prior to your contractual commencement date, toggle the bar to YES and record the date that you took control of the asset.

The date you enter will serve as your commencement date in IFRS 16 Reports, with Lease Liability and Right of Use Asset balances unwinding from that date onwards. The First Payment Date recorded on the Rent & Payment page will remain in place, meaning that rent payments will only begin from that date forward. 

If you expect to pay a residual value guarantee, toggle the bar to YES and record the amount of that guarantee.

This will be added to the Lease Liability at the present value of the payment.

If you reasonably expect to exercise a price of purchase option, toggle the bar to YES and record the amount of the purchase option. This value will be added to the Lease Liability at the present value of the payment.  

If known, use the calendar tool to enter in the end date of the useful life of asset if it does not align with the end of the lease term. If you're adding in a date here, you'll need to ensure you've also recorded an amount above or you'll get an error message when you try to run your reports for this agreement.

If you expect to terminate an agreement early, toggle the Include payments of penalties for terminating a lease bar to YES.
 

Record the Expected Termination Date, and if applicable, record the amount of the penalty fee. The penalty fee will be added to your Lease Liability.

If you enter in an amount, you must also record an expected termination date or you'll get an error message when you try to run your reports.

If there were any initial direct costs incurred to secure the lease, toggle YES and record the amount of the costs.  

Initial direct costs are the incremental costs of obtaining a lease that would otherwise not have been incurred. These costs may include commissions, legal fees and costs of negotiating lease terms and conditions (if contingent on origination of the lease), and any costs of arranging collateral.

If your transition method is Full Retrospective or Modified Retrospective and there is a provision to recognize the costs to dismantle and remove an underlying asset under IAS 37, toggle the Make Good Value to YES and record the amount.

If you're using the Simplified transition method and you have a make good value, you'll need to record this under the make good question designed for simplified transition methods. If you enter data in a field that does not match your transition method, the system will not take it into account. 

If the Right of Use Asset is accounted for under IAS 40 toggle the bar to YES. If so, at each applicable reporting date you will have to adhere to the valuation requirements per IAS 40 and the straight line depreciation methodology will not apply.  

Any increase or decreases in value of the Right of Use Asset will wash through the Profit and Loss.

You'll also need to enter in the fair value of the Right of Use Asset at the date of transition under the Modified Transition > Other Considerations section of the questionnaire.

If your lease is required to be fair valued on commencement, toggle YES and record the fair value at the date of commencement.

If your lease was acquired as part of a business combination, toggle the question to YES. Record the Effective date of transaction, discount rate of transaction, and any deferred gain/loss recognized on that date. Please note that your reporting for this agreement will only start on the effective date of this transaction.

If desired, you can set up internal management of inter company leases by recording an Intercompany Lessor reference and an Intercompany Percentage. This will have no impact on the calculation of your Lease Liability or Right of Use Asset.

If an agreement has been assigned to your organisation i.e. the agreement has been assigned from the original lessee to your organisation (as the new lessee) and your organisation has assumed all obligations and lease payments, then toggle the bar to YES. 

Record the Assignment Date and the Discount rate on the date of assignment. Your reporting will only start on the Assignment date.

Although you may have entered Assignment Events during the initial onboarding process, they will not automatically pull through to your IFRS assumptions, hence you will still need to make a selection here if there is an assignment. 

If you're using the Simplified transition method, and this lease was acquired through a business combination, with a lease asset or liability recognised on the date of transition, toggle the bar to YES. 

Record the amount of deferred gain or loss on the balance sheet at date of transition.

If you're using the Simplified transition method, and there is a make good provision, toggle YES and enter the relevant amount in the space provided.

The effect of this is that at transition, the make good provision is to be removed from its current classification on the balance sheet and reclassified to the Right of Use Asset, thus increasing its value. Liability does not change and is still accounted for under IAS 37.

If you are using the Simplified transition method, and there was any deferred or accrued rent payable at the date of transition, toggle YES and record the amount. 

The effect of this is that at transition, the rent amount recorded will appear as “Accrued Rent - Suspense account” in the Journal report, and the amount will be added to the opening Lease Liability balance. There will be no impact to the Right of Use Asset.