Classify All Leases sets up the ASC 842/IFRS 16/GASB 87 classification for pre-transition leases. You can get to the Classify All Leases workspace by going to File > New Standard Updates. From there, if you check the "Reclassify" box, it will also reset the classification for leases that start after the transition date. Reclassify is primarily intended for use if you change your planned implementation date for the new standard.
This sets the post-transition classification; for finance leases and ASC 842 operating leases, the proper discount rate is also determined.
Before you classify leases, you need to update the leases with the ASC 842/IFRS 16/GASB 87 information. Please use the upload or group change to set the transition incremental borrowing rate and (IFRS) whether leases are of low-value assets; if you have (US) combined land and building leases with capital buildings, you should split them.
Valid Classifications for lessee leases:
ASC 842: Finance, Operating, Short Term
IFRS 16: Finance, Low Value, Short Term
GASB 87: Finance, Short Term
Valid classifications for lessor leases:
ASC 842: Finance/Sales Type, Finance/ Direct Financing, Operating
IFRS 16: Finance, Operating
GASB 87: Finance/ Sales Type, Short Term