Categorizing Components
Last updated on 2024-12-19
Overview
The categorization process in Lucanet Lease Accounting checks all new and modified contract components and classifies them in accordance with IFRS 16.
Contract components that are categorized as regular leases are included in all the subsequent calculations carried out by Lease Accounting.
Contract components that are classified as short-term or low-value are not taken into account for the remainder of the process.
In the Categorization workspace, you can:
- view components to be categorized
- categorize components
- view the categorization result
Categorizing Components
To categorize components, proceed as follows:
- Open the Components to be categorized workspace to view all the components that have been added or modified since the last categorization:
The ‘Components to be categorized’ Workspace - Click Categorize and confirm the query dialog that appears.
- Lease Accounting will carry out the categorization process automatically.
Viewing the Categorization Result
Once categorization is completed, you will find an overview of the categorized components in the Categorization Result workspace:
The 'Categorization Result' workspace
- The Lease category column shows the categories selected by Lease Accounting in accordance with IFRS 16.
- Only leases categorized as Regular are displayed, because leases in the Low-value and Short-term categories are not included in the accounting process for leases in accordance with IFRS 16.3-4.
- If you make any changes to a component, you will need to recategorize said component as described in this section so that the details used by Lease Accounting in subsequent calculations are up to date.