Elire News

Tag: Lease Administration

PeopleSoft FSCM PUM 31 GASB Updates

April 12th, 2019

PeopleSoft FSCM PUM 31 GASB Updates

Recently, PeopleSoft PUM FSCM Image 31 became available and includes functionality to ensure Government Accounting Standards Board (GASB) compliance as it relates to Lease Accounting.

The GASB issued statement number 87 (GASB 87), is a new accounting standard for lease accounting. The new standard is effective in 2020. GASB 87 is similar to previously released guidance from FASB and IASB with some differences. A key requirement under GASB is to capitalize leases as assets and liabilities on the balance sheet. The operating lease classification no longer exists under GASB. This is similar to guidance under IASB. However, GASB does classify certain leases as ‘Financed Purchases’ which is different from IASB or FASB.

When the business unit reports under GASB, the system classifies assets in the business unit as finance and disregards the criteria for classification of leases used by FASB.  This can be completed by enabling the GASB 87 features using the same installation options used for IASB and FASB.

In addition, GASB 87 requires organizations to classify certain leases as a ‘Financed Purchase.’ The initial measurement of the lease liability and the asset is the same for a financed purchase. The difference is the liability account used for a financed purchase. The liability should be reported using the ‘Financed Purchase’ account rather than the ‘Lease Liability’ account.

The GASB identifies a financed purchase as a lease that:

  • Transfers ownership of the underlying asset to the lessee by the end of the contract and the lease cannot contain termination options.
  • The lease may contain a fiscal funding or cancellation clause as long as it is not reasonably certain of being exercised.

The GASB views this lease as a financed purchase rather than a lease liability, because the lessee is expecting take ownership of the leased asset.

Accounting for financed purchases requires changes to transaction code configuration, the transaction code selected on the asset, and the accounting entry templates.  This is completed by creating a new transaction code for Financed Purchases (FP – Financed Purchase – Fin Purch). When adding a new asset, the checkbox “Transfer of Ownership” will also need to be selected for these instances.

About the Author: Bryan Reynolds is a Consultant in Elire’s Lease Administration Practice, responsible for implementing Oracle’s Lease Accounting Modules.

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Elire at #PSRECONNECT 2018!

July 9th, 2018

Elire at #PSRECONNECT 2018!

 

Next week, Team Elire will be in Rosemount, IL for Quest PeopleSoft RECONNECT! As largest PeopleSoft focused conference around, RECONNECT offers more than 200 deep-dive sessions across all PeopleSoft product areas including PeopleSoft in the Cloud, Selective Adoption, Testing Automation, Fluid UI, and more! With over 600 Cross-Industry Attendees representing Financial Services, Healthcare, Utilities, Public Sector, Education and others, the networking opportunities through Special Interest Groups, Roundtables, Receptions, and Exhibitor Showcases is unmatched!

Elire will be presenting FIVE sessions this year, as well as exhibiting at Booth #403. Stop by during open exhibiting hours and enter to win a Yeti Backflip Cooler!

101360 Tue. Jul. 17 | International Ballroom C
12:45 – 1:45 pm PeopleSoft Treasury SIG Meeting

101710 Wed. Jul. 18 | Heathrow AB
8:00 – 9:00 am PeopleSoft on Oracle Cloud: What Does this mean for your PUM Strategy?

101740 Wed. Jul. 18 | Grand Ballroom F
8:00 – 9:00 am Accounting Standards Made Easy with PeopleSoft Lease Administration

102560  Wed. Jul. 18 | International Ballroom C
11:15 am – 12:15 pm  Double the PeopleSoft 9.2 Upgrade Fun – Henderson, NV’s FSCM & HCM Public Sector Success Story

102260 Thu. Jul. 19 | Grand Ballroom F
1:45 – 2:45 pm Taking Accounts Payable to the Future: 5 Pillars of Automation

Discounted registration is available through July 12th here. 

To schedule a time to connect with the Elire team or speak with our Experts, email [email protected]

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RECAP: COLLABORATE 18 in Las Vegas!

April 27th, 2018

RECAP: COLLABORATE 18 in Las Vegas!

Thank you to all who joined us in Las Vegas for COLLABORATE 18! We always love connecting with our clients, the Quest International Users Group and OAUG Communities, and other PeopleSoft Experts!

Elire was honored to present ten sessions on Oracle Cloud, Lease Administration, Peoplesoft 9.2 Upgrades, AP Automation, PeopleSoft on Oracle Cloud, and Treasury! For a complete list of our sessions, click here

Aside from Sessions, the Elire team exhibited at Booth #730 to answer questions and connect users with our Subject Matter Experts. 

If you missed us at the booth or would like to set up a follow up, contact [email protected]

We look forward to seeing everyone at COLLABORATE 19 in San Antonio, TX!

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FASB and IASB Changes – What you NEED to know!

November 28th, 2017

FASB and IASB Changes – What you NEED to know!

Massive changes to Financial Accounting Standards Board (FASB) and International Accounting Standards Board (IASB) Regulations will affect both Lessors and Lessees. In order to help you prepare and know what to expect, we asked our experts what you needed to know! Elire has an entire practice dedicated to Lease Administration to ensure your organization is prepared. Here is what our experts had to say:

 

For more information or to evaluate the changes FASB/IASB regulations will have on your organization, email [email protected].

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