This is part of the ARO module for EZLease.
You may enter credit-adjusted risk-free rates to be used for accreting the ARO. This has two purposes:
- For U.S. users complying with FAS 143/ASC 410, this table can be used to automatically fill in the Risk-Free Rate field when the ARO Begin Date is entered. If the Risk-Free Rate is zero or blank when the ARO Begin Date is changed, the appropriate rate (the most recent rate dated on or before the begin date) is filled in.
- For users complying with IAS 37, this table provides both the initial rate for an ARO and subsequent adjustments. IAS 37 requires recalculating the ARO at any reporting date when the current market rates have changed. When an ARO is active and the rate changes, EZLease adjusts the ARO and the ARC asset in tandem.
Select your purpose for this table using the Recalculate accretion when rate changes box below.
Enter the rate, and its effective date. If you are using the table for IAS 37 recalculation, please note that entering an effective date before today will cause any reports that end after the effective date to give different results from when they were originally run. If you enter an effective date before the start of your current fiscal reporting period, your beginning balances for the period will not match previously run reports for the prior period ending balance.