Where do I enter balances that existed under the previous standard?
The "Existing Balances under Previous Lease Guidance" section appears only on step 2 of entering a transition lease—defined as a lease existing before adopting the new standard—where the lease start date must match the Initial Application Date, preventing entry of initial Lease Incentives and Direct Costs and instead requiring any pre-existing balances as of that date to be entered as positive numbers in this section.
The Existing Balances under Previous Lease Guidance section will only appear on step 2, Lease Payments & Classification when entering a transition lease.
Transition leases are those that were in place prior to the adoption of the new standard and in the software. When entering a transition lease, the Start Date of the transition lease is entered as the same day as the Initial Application Date, not before. The start date is populated on Step 1 (Description & Term) of Add Lease or on the Bulk Import Template.
When the start date of a lease matches the Initial Application Date of the corresponding Reporting Entity, the software prohibits the entry of initial Lease Incentives and Initial Direct Costs and routes entry of any pre-existing balances to 'Existing Balances under Previous Lease Guidance'. Existing Balances are those balances in place on the balance sheet as of the Initial Application Date and entered as a positive number.
If it is determined that the reason the system doesn't recognize a transition lease is because of an incorrect Initial Application Date, please see the instructions to correct in the Knowledge Base article "What if the Initial Application Date is entered incorrectly?"