Quantitative Disclosures
Category
Financial Reporting
Quantitative disclosures are the numerical data points required in lease accounting footnotes. Under ASC 842, these include the maturity analysis of lease liabilities, lease cost table (operating, finance, short-term, variable), weighted-average discount rate, weighted-average remaining lease term, and ROU asset and liability rollforward amounts.
Why it matters
Quantitative disclosures are the most time-consuming part of period-end lease accounting. The maturity analysis alone requires projecting undiscounted cash flows for each of the next five fiscal years plus a thereafter bucket. and reconciling the total to the discounted lease liability on the balance sheet. The reconciliation difference (the discount) must be disclosed separately. Errors in the maturity analysis are among the most common restatement triggers.
How Arvexi handles this
Arvexi generates all required quantitative disclosures automatically from portfolio data. The maturity analysis, lease cost tables, weighted-average metrics, and rollforward schedules are calculated in real time and update as leases are added, modified, or terminated. Each number traces back to the underlying lease data for audit verification.