The new lease accounting standard for the public sector, Governmental Accounting Standards Board Statement No. 87, Leases (GASB 87), is effective for organizations with fiscal years beginning after June 15, 2021.
GASB 87 changes the financial reporting requirements of organizations that enter into contractual relationships that meet the definition of a lease for assets such as real estate, vehicles and equipment. The new standard will have a significant impact on financial statements, debt covenants, processes, documentation and controls.
If your organization has arrangements that need to be accounted for under GASB 87, it’s important to prepare now for implementation.
Baker Tilly has developed a GASB 87 lease accounting assistance tool to help your organization with the complexities of adopting the new standard. Use this tool to:
- Identify which contracts for lessees and lessors may qualify as leases under GASB 87
- Gather information needed to accurately record and disclose each lease
- Create an inventory of all identified leases with the adoption of this standard
