Summary
This guide serves as a comprehensive resource on GASB 87, which outlines the new requirements for lease accounting applicable to state and local governmental entities. It details the significant impacts of GASB 87 on financial statements, replacing previous operating and capital lease categories with a unified model that treats leases as financings of the right to use an underlying asset. The guide explains the obligations of lessees and lessors, including the recognition of lease liabilities and intangible assets for lessees, as well as lease receivables and deferred inflows for lessors. It also outlines the effective date for GASB 87, which is applicable to fiscal periods beginning after June 15, 2021, and discusses the administrative challenges organizations may face in adopting these standards. Additionally, the guide identifies what qualifies as a lease, the types of leases exempt from GASB 87, and the necessary lease information required for compliance. It emphasizes the importance of accurate lease data collection and the complexities involved in lease accounting calculations and disclosures.
