Overview of Lease Accounting

Oracle Lease Accounting is a financial application that helps create and maintain leases in a single repository.

Lease Accounting covers both expense and revenue lease creation, generation of payment and revenue schedules, and transfer of accounting information seamlessly to Oracle Payables and Oracle Receivables.

Lease Accounting provides the ability to capture information such as lease details, assets, payments, and options. Calculations of accounting schedules, creation of milestones, rights, and obligations are also available. A lease validation process ensures quality data before activation. The amortization engine calculates the present value of the leases.

Lease Accounting also calculates the amortization of the right-of-use and the lease liability balances according to IFRS16 and ASC842 for expense leases.

The new accounting standards introduced in the past few years have transformed accounting rules that lessees must follow to comply. Lease Accounting has the following features:

• To help you manage and process leases to comply with IFRS16, ASC842, or both these accounting standards in a touch-free and seamless manner.

• To improve planning with a single repository of all lease obligations.

• To generate calculations for balance sheet balances and expenses.