Best way to convert an Operating Lease to a Finance lease

Hi Community -

We are going to have over 500 leases that will need to be converted from operating leases to Finance leases and need to know the best way to go about it. the following things will change:

• Lease term will extend to 60 months
• Lease payments will be reduced
• $1 residual payments will be added

Questions:

• can we use the existing leases and change the lease classifications?
• if same leases are used, will we be able to update the borrowing rate?
• If same lease are used, do we have to terminate the recurring billing lines and existing amortization schedules or can we re-measure?