Assign numerous rate tables for all lease types instantly.
For companies operating hundreds of leases, consistently applying the correct discount rates can be a huge challenge. Especially when those leased assets have a wide variety of geographies, currencies, lease terms and types. Each time you create an amortization schedule for a lease, you need discount rates. The same is true when the ROU asset and lease liability is Wd.
Manually tracking changes and applying updated discount rates becomes an arduous task for accounting teams. To avoid misclassifications and financial misstatements, ASC 842 requires precision.
As a result, many accounting teams spend hundreds of hours searching for the appropriate discount rates. This is true for private companies and public companies.
The better approach to this problem is to regularly obtain a list of discount rates from the treasury department. Then, have the software system automatically apply the updated rate tables to the entire portfolio.
This automatic matching method reduces the risk of errors throughout the lease accounting process. Isn't that what every accounting team wants?