Understanding Accounting for Foreign Currency Leases

Lease Administration supports foreign currency leases. A foreign currency lease is a lease with a currency code on the financial terms page that is different from the currency code for the Lease Administration business unit. Foreign currency lease transactions capture two amounts:

• Transactional Currency Amount, denominated in the lease currency.

• Base Currency Amount, which is calculated by applying a currency exchange rate to the transactional currency amount for a specified date.

The following sections describe the unique accounting requirements for foreign currency leases.

For details about foreign currency accounting, see the Accounting for Foreign Currency Payable Leases in PeopleSoft white paper on My Oracle Support (support.oracle.com).

Important:

The foreign currency lease accounting guidance provided in this documentation is based on Oracle-PeopleSoft’s interpretation of accounting guidance and assumptions in how accounts are typically used by an organization. Please review account revaluation accounting policies with your internal accounting department.