ProLease Release Notes

1 IMPORTANT This document includes all changes made to the ProLease Lease Administration Database since version You can print only the pages you want based on the table of contents below. Version Changes Print Page 2 10 Release Date 5/23/2020 Version 2020 Changes Print Page 11 24 Release Date 3/28/2020 Version Changes Print Page 25 40 Release Date 10/26/2019 Version Changes Print Page 41 53 Release Date 8/31/2019 Version Changes Print Page 54 59 Release Date 4/20/2019 Version 2019 Changes Print Page 60 120 Release Date 3/2/2019 Version Changes Print Page 121 128 Release Date 12/22/2018 Version Changes Print Page 129 131 Release Date 10/27/2018 Version Changes Print Page 132 194 Release Date 8/18/2018 Version Changes Print Page 195 206 Release Date 6/23/2018 Version Changes Print Page 207 210 Release Date 5/12/2018 ProLease Release Notes 2 ProLease Release Notes May 2020 What s New in Version We are pleased to report that Version contains the first major upgrade to the look and

2 Feel of ProLease . Version features a completely redesigned User Interface that we call the new UI. We designed this new UI to improve two key areas: appearance and navigation. The appearance of the screens is changing to make ProLease more pleasing to look at and to make it easier to see the information you are looking for. With new navigation bars along the left side and across the top of the screens, you will be able to get where you need to go more quickly and efficiently. The most important message we want to deliver to you about the new UI is that we are not making any changes to how ProLease works. All the functionality that was built into ProLease will be working the exact same way it did before. The contents of each screen are staying the same. There may be some slight rearranging of the layout of certain screens, but we think once you get used to the new layouts, you ll like them better.

3 Pages 2 10 below contain a few examples of the old screens and the new screens shown one on top of the other. We don t have pictures of every screen. By seeing a few examples, you will get the idea very quickly. We are excited about the new UI. We think you will be too. As always, Thanks a bunch for using ProLease 3 ProLease Release Notes OLD UI Main Menu, Real Estate tab Just about the only change in the New UI is where the Exit Database and Edit My Profile buttons are located in the Main Menu. NEW UI Main Menu, Real Estate tab To find these buttons in the New UI, click the triangle to the right of your user name to reveal the drop down menu that contains both buttons. User Name 4 ProLease Release Notes OLD UI Real Estate Search Menu NEW UI Real Estate Search Menu User Name 5 ProLease Release Notes OLD UI Real Estate Screen 1 General Property Info NEW UI Real Estate Screen 1 General Property Info User Name 6 ProLease Release Notes OLD UI Real Estate Screen 16 Base Rent NEW UI Real Estate Screen 16 Base Rent User Name 7 ProLease Release Notes OLD UI Main Menu, Equipment tab NEW UI Main Menu.

4 Equipment tab User Name 8 ProLease Release Notes OLD UI Equipment Search Menu NEW UI Equipment Search Menu User Name 9 ProLease Release Notes OLD UI Equipment Screen 1 General Lease / Asset NEW UI Equipment Screen 1 General Lease / Asset Information User Name 10 ProLease Release Notes OLD UI Equipment Screen 5 Lease Payments NEW UI Equipment Screen 5 Lease Payments That concludes the What s New section for Version We hope you like it. Please feel free to contact us if you have any questions or comments. User Name 11 ProLease Release Notes What s New in Version 2020 We are pleased to report that the following new features, functionality, and other updates have been included in Version 2020: 1. Current vs Non Current Lease Liability All journal entries (JEs) that affect the Lease Liability have been modified to automatically breakout the current and non current portion of the liability.

5 This will eliminate the need for periodic, manual true ups. 2. JE (9) Full Termination Without Option JE updated to be consistent with the latest interpretations of a full lease termination. 3. JE (8) Partial Termination Without Option JE updated to be consistent with the latest interpretations of a partial lease termination. 4. New JEs Added New JEs have been designed to accommodate capitalization schedules that have been stopped early and for certain other activities. 5. Other Improvements to JE Functionality Addition of Error Trapping to prevent a user from making an incorrect input ( that does not generate a JE) into ProLease . Correction of inconsistencies with JE (6) to derecognize the Gross ROU Asset and Accumulated Amortization at lease expiration. 6. Weighted Average Discount Rate (WADR) in Disclosure Report Improved and refined the calculation.

6 7. IASB Finance Lease That Was Previously Operating Allow the ROU Asset Amortization Term to be changed. 8. Miscellaneous minor report and screen changes. 12 ProLease Release Notes 1. Current vs. Non Current Lease Liability On balance sheets produced according to Generally Accepted Accounting Principles (GAAP), liabilities are usually separated into their current and noncurrent portions. The current portion of a liability represents the amount that will amortize within the next 12 months and the noncurrent portion represents the portion that will amortize later than that. In ProLease s previous programming, our journal entries took into account the proper breakdown between the current and noncurrent portions at the inception of the capitalization schedule in JE (T 1) or JE (1) for the Initial Segment To be Transitioned or the Initial Segment, respectively.

7 For all JE activity affecting the lease liability balance after initial recognition, the entire amount was being posted to the Noncurrent portion of the lease liability. This JE activity necessitated periodic manual true up entries to be made to your general ledger outside of ProLease . The instructions for this process were contained in the monthly Non Detail Journal Entry Report as JE (5): With this new Release we are enhancing ProLease s functionality to keep track of all journal entry activity that affects the lease liability according to the proper breakdown between the current and noncurrent amounts. So once this new version is installed and one final manual true up calculation is performed, then you will no longer need to perform any periodic manual true up. 13 ProLease Release Notes IMPORTANT This change only affect JEs that have activity that gets posted to the lease liability accounts.

8 So, the changes being made here will appear in JEs (3), (7), (8) & (9). The JEs which do not impact the lease liability accounts will not be changing at all. These are JEs (2), (4), (5), (6), (10), (11), (12), (13) & (14). The change you will notice in JEs (3), (7), (8) & (9) is that each of these JEs will have two separate rows to reflect the changes to both the current and noncurrent portions of the lease liability. Previously these journal entries had only one row for the monthly change to the lease liability, all being posted to the noncurrent lease liability. Although there will be no need for ongoing periodic true up manual JEs, we will be leaving the instructions for how to do this in the monthly Non Detail Journal Entry Report as JE (5 TU). The designation (5 TU) is meant to r epresent the True Up ( TU ) entry. We are adding this suffix because we created a new JE (5) as part of this Release .

9 Here are the new JE (5 TU) instructions: 14 ProLease Release Notes 2. JE (9) Full Termination Without Option ProLease JE (9) is generated when a lease is terminated early in its entirety but there was no option within that lease to terminate early ( a negotiated early termination). Previously, this JE was a one part JE that derecognized the Lease Liability and ROU Asset and recorded a Loss / (Gain), if applicable. In this Release we are making a few improvements to JE (9). While these improvements will not have a significant impact on the results, we believe the improved JE (9) creates consistency with the two part methodology utilized for JE (8), Partial Termination Without Option and better aligns with the latest interpretations of this situation. Improvements made include the following: a. JE (9) is Now a Two Part Journal Entry Consistent with previous practice, the JE is still triggered in the month that a New Segment with a Reason for Segment of (HCJE) Termination Full Without Option is entered in ProLease .

10 Consistent with previous practice, that new segment should be created on the Effective Date ( when the parties agree to the termination), not on the Termination Date. However, the resulting JE will now be a two part JE. The first part, JE (9 1), will record the reduction to the Lease Liability and ROU Asset attributable solely to the weighted average reduction in the lease term with any difference being recorded as a Loss / (Gain). The second part, JE (9 2), records the remeasurement of the Lease Liability and ROU Assets due to other changes in the lease ( change in discount rate, change in rent, addition of a termination penalty, etc.). b. Treatment of Termination Penalties Users previously and still do have the ability to account for termination penalties based upon their own accounting policies and interpretations of the standard. Previously in the Non Detail JE notations, ProLease was recommending that termination penalties be recorded outside of ProLease directly to the Loss / (Gain) at the Effective Date, which was consistent with early interpretations.