My Oracle Support Banner

Subledger Accounting(SLA) Setup for Compliance ASC 842 Finance Property and Equipment Lease (Doc ID 2971561.1)

Last updated on AUGUST 31, 2023

Applies to:

Oracle Property Manager - Version 12.1.3 and later
Information in this document applies to any platform.
Author : Navin and Tamoghna
Co-author: Monika

Purpose

 SLA Setup to ASC842 Finance Lease

Scope

 Configuring SLA accounting for US GAAP regimes poses slight challenge than configuring IFRS accounting. USGAAP still maintains the distinction between Operating/Finance leases for ROU and Amortization calculations.

Property Manager only addresses different way of ‘Amortization’ for USGAAP. It still does not support different way of calculating ROU accretions from Rent Increase. For rent increase for ROU in USGAAP, the need is to expense off the revision amounts. Property Manager can only expense off the rent increases or capitalize them. It still cannot handle two ways of accounting the rent increases. Hence users can comply with USGAAP or IFRS but not both for ROU accretions.

Similarly, ‘Impairment’ adjustments through ‘options’ does not give exact results in USGAAP as they give for IFRS.

Details

To view full details, sign in with your My Oracle Support account.

Don't have a My Oracle Support account? Click to get started!


In this Document
Purpose
Scope
Details
 Accounting Leases based on Lease Classification:
References

My Oracle Support provides customers with access to over a million knowledge articles and a vibrant support community of peers and Oracle experts.