15.3 Exercise an extension option that previously has not been exercised

Click on Log other change (Submenu to Log change) and register the date when the change is effective. Here, the change will be accounted in October 2020, since the change date is set to October 16th 2020. The calculation result will not be changed before the change date. In this example, all figures in the calculation model before October 2020 will be intact.

Uncheck the Unused box to exercise the extension option and then go the Discount Rate section to change the discount rate from 3 to 4.

Click Save and update the calculation file with the change by clicking Update leases.

Review the change in Lease liability and ROU asset (See below).

You can easily find the contract with a change of option extension by using the filter in the Changes tab. Go to Search filters and choose Change type.

Then choose Option extension to find all the leases that have exercised option extensions in the Lookup periods.

You’ll also find the change in the reconciliation menu under the Adjustment column. You can easily find the contracts with extension option changes by using search filters. Go to Search filters and choose Has exercised option.

Then choose TRUE, to find all the leases that have exercised option extension.