The Governmental Accounting Standards Board (GASB) Statement No. 87, Leases, establishes a single model for lease accounting based on the principle that leases are financings of the right to use an asset. There is no longer an operating vs capital classification. Lessees will recognize a lease liability and an intangible right-to-use asset, and lessors will recognize a lease receivable and a deferred inflow of resources.
GASB 87 is effective for fiscal year 2022, and applies to leases of tangible capital assets—including buildings, land, and equipment. In addition, GASB has issued an exposure draft that would expand the requirements to subscription-based information technology arrangements.
The materiality threshold for GASB 87 leases has been established at $500,000 for the State both as a lessee and lessor. Interest rates and AFIS implementation guidance will be forthcoming.
IMPLEMENTING GASB 87
GAO GUIDE & RESOURCES
Leases Introduction - CFO Meeting on 1/27/2021
GASB 87 Overview -- CBT version is available in TraCorp under GASB87_GAO
Lease Accounting Decision Tree
GASB 87 Scope Guide
GASB LITERATURE & RESOURCES
GASB Statement No. 87, Leases
GASB Implementation Guide No. 2019-3, Leases
GASB Statement No. 96, Subscription-Based Information Technology Arrangements
GASB Statement No. 96, Postponement of the Effective Dates of Certain Authoritative Guidance
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