Preparing PeopleSoft Asset Management and Lease Administration for the New Leasing Guidance

In 2016, the IASB and FASB (the Boards) issued new accounting guidance specific to leases. Although the Boards reached consensus on key issues, such as requiring leases to be reported on the balance sheet and the initial measurement of lease liabilities, there are differences between the two accounting standards, most notably as it relates to lessees. FASB adopted a dual-model approach for lessees (finance and operating lease classification); while the IASB determined that a single-model approach (finance only) provides greater merit for lessee agreements.

PeopleSoft has been actively working on enhancements that directly impact PeopleSoft Asset Management and PeopleSoft Lease Administration, formerly Real Estate Management. The development approach has been organized into 4 phases.

Phases 1 and 2 were delivered in Update Images 10 and 19, respectively. These enhancements serve as the foundation for the Phase 3 and 4 enhancements that intend to specifically address the accounting requirements in the new standards (ASC 842 and IFRS 16).

Enhancements in Update Image 10 included adoption of the financials audit framework, supplemental data, and lease data import. The Update Image 19 enhancements expanded existing functionality in PeopleSoft Lease Administration to include leasing for equipment and other asset types, as well as tighter integration with PeopleSoft Asset Management. For a list of enhancements delivered in Phase 1 (Update Image 10) and Phase 2 (Update Image 19), please refer to the Cumulative Feature Overview.

Phases 3 and 4 plan to address topics such as lessee accounting pursuant to the new leasing guidance, transition, and migration of all leases to a single data model. Phases 3 and 4 are targeted to be released within the next 12 months. All enhancements are planned for 9.2 only.

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.