Can i amortize the revenue of the first year of the contract separated from the rest of lease period
Dears,
I am currently implementing Oracle Fusion Cloud Lease Accounting (Revenue Lease).
We have a specific business requirement regarding revenue amortization that deviates from the standard straight-line method.
Lease Details:
Contract Start Date: 01-Jan-2026
Rent-Free Period: 01-Jan-2026 to 31-Mar-2026 (3 Months)
Payment Start Date: 01-Apr-2026 and End Date: 31-Mar-2028
Contract End Date: 31-Mar-2028Total Lease Term: 27 Months
The Requirement:
The client wants to recognize a specific portion of the revenue (equivalent to the first year’s value) over the first 15 months (from Jan-2026 to Mar-2027), and then amortize the remaining contract value over the final 12 months.
The Challenge:
As per standard IFRS 16 / ASC 842 logic, Oracle FLA automatically generates a straight-line amortization schedule over the entire 27-month duration.