The Financial Accounting Standards Board (FASB), the International Accounting Standards Board (IASB), and the Government Accounting Standards Board (GASB) have all issued revisions to their respective leasing guidance. The revisions represent significant changes to lessee accounting, which has resulted in extensive product enhancements impacting both PeopleSoft Lease Administration and PeopleSoft Asset Management.
PeopleSoft’s development approach for lease accounting has been organized into 4 phases, with all enhancements planned for 9.2 only. The first 3 phases were delivered in Update Images 10, 19, and 24, directly impacting Lease Administration customers only. With Phase 4, customers licensed only for the PeopleSoft Asset Management module will be introduced to many of the enhancements delivered in the PeopleSoft Lease Administration module in the first 3 phases.
The migration of Asset Management leases to the Lease Administration data model intends to establish the sharing of leasing functionality between PeopleSoft Lease Administration and PeopleSoft Asset Management. Our plan is for those customers licensed only for Asset Management to benefit from features and functions within the Lease Administration module that specifically addresses the core accounting requirements for payables leases (lessee agreements). The planned functionality includes:
- Single-asset leases (finance or operating)
- Multiple financial terms
- Base Rent
- Miscellaneous Rent (payments included or not included in lease payments)
- Initial Direct Cost
- Lease Incentives
- Options reasonably certain to be exercised
- Integration with PeopleSoft Accounts Payable for lease payments
- Amendment Processing
- Manual Fees
Customers with more advanced leasing requirements should consider licensing Lease Administration. Advanced leasing functions include:
- Multi-asset leases (finance or operating)
- Options and Critical Dates
- Operating Expenses (CAM)
- Percent Rent
- Security Deposits
- Site Selection and Acquisition
Phases 1 through 3 and our plans for Phase 4 have been focused primarily on the FASB and IASB payables lease requirements. Our plan is to evaluate the lessee accounting requirements in GASB 87 next followed by lessor requirements for FASB and IASB. Lessor requirements in accordance with GASB 87 are not on the roadmap.
The preceding is intended to outline our general product direction. It is intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, or functionality, and should not be relied upon in making purchasing decisions. The development, release, and timing of any features or functionality described for Oracle’s products remains at the sole discretion of Oracle.