Property Manager - EBS (MOSC)

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Accounting for Early Termination of Finance Lease (IFRS 16) in Oracle Property Manager R12

edited Dec 18, 2019 4:06AM in Property Manager - EBS (MOSC) 9 commentsAnswered

Hi All

I would like to understand the early termination logic used by Oracle and the accounting thereof.

We have early termination cases. Eg. Lease Start date is 01 Jan 2019 and End date is 31 Dec 2026. However Business decides to terminate the Lease on 30 Nov 2019 itself.

We expect the System to reverse the ROU Asset and Lease Liability with the balance as at 30 Nov 2019 in the Balance Sheet and post the difference to Income Statement.

Thus it is a simple Journal expected from the system. However we notice that the system is just reversing the Lease Liability balance with correct amount and involving all other accounts in this Journal including Amortization, Interest, ROU Asset, Gains with amounts which we are unable to understand.

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