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Lease Accounting Under GASB 87: The Guide to Hassle-Free Compliance
The Governmental Accounting Standards Board (GASB)
is responsible for setting accounting standards for
governmental entities in the United States. GASB 87 is
their latest statement on accounting requirements for
recognizing and reporting on leases by government
entities.
GASB 87 is designed to make information about
governments' leasing activities more useful, relevant,
and consistent by providing a single model for lease
accounting, replacing operating and capital lease
categories from previous statements.
Following an 18-month postponement due to
COVID-19, GASB 87 went into effect starting in 2021. All
organizations subject to GASB 87 must now comply
with its requirements, and they are encouraged (where
practicable) to restate financial statements for periods
prior to when it went into effect.
In this ebook, we'll walk you through everything you
need to know about GASB 87, whether you're a lessee or
a lessor, including:
ظ Who is subject to GASB 87
ظ Which leases are subject to GASB 87 (and which are
exempt)
ظ How to do lessee accounting under GASB 87
ظ How to do lessor accounting under GASB 87
ظ How to account for lease contracts with multiple
components
ظ How to account for lease terminations and
modifications
ظ How to account for subleases and leaseback
transactions
Introduction
Along the way, we'll explain how Tango Lease
streamlines your accounting processes and helps keep
you compliant with lease accounting standards like
GASB 87.
Who is subject to GASB 87?
All lessees and lessors involved in leases to or from US
governmental entities are subject to the standards of
GASB 87. In other words, GASB 87 applies to you if you
are either:
ظ A governmental entity with any applicable lease
contract
ظ A landlord (or other lessor) that leases to a
governmental entity
Examples of US governmental entities subject to GASB
87 include:
ظ State governments
ظ Local governments
ظ Municipal governments
ظ Public colleges and universities
ظ Public utilities
ظ Public airports
ظ Public hospitals and health providers
ظ Public benefit corporations and authorities
ظ Public employee retirement systems
Whether you're a governmental entity or a landlord
leasing to one, Tango has you covered. Our lease
software helps both lessees and lessors confidently
manage their lease activities.
