Lease Liability for Foreign Currency Migrated Leases

Account for lease liability using the current foreign currency conversion rate when migrating foreign currency denominated leases. Lessees may enter into leases with lease payments denominated in a currency different from the ledger currency. Making lease payments denominated in a foreign currency is a monetary liability that must be recalculated each reporting period at the current foreign currency conversion rate, with any changes recognized in the income statement.

The lease liability of foreign currency denominated leases is accounted in the ledger currency using the currency conversion rate as of the Amortization Start Date instead of the historical right-of-use asset conversion rate.

Business benefits include:

• Enhance compliance with lease accounting standards for foreign currency denominated leases.
• Improve operational efficiency with streamlined accounting when migrating existing portfolios.

Here's the demo of these capabilities:

Steps to Enable

Use the Opt In UI to enable this feature. For instructions, refer to the Optional Uptake of New Features section of this document.

Offering: Financials  No Longer Optional From: Update 25C

Key Resources

• This feature originated from the Idea Labs on Oracle Cloud Customer Connect: Idea 777155

Access Requirements

You do not need any new role or privilege access to set up and use this feature.