We are delighted to announce that EZLease now includes full GASB 87 compliance for lessees. (Lessor compliance with GASB 87 will be forthcoming at a later date.) GASB 87 is the new lease accounting standard for governmental entities in the U.S., promulgated by the Governmental Accounting Standards Board. GASB 87 takes effect for governments for fiscal years starting after Dec. 15, 2019 (i.e., years that start in 2020).
As previously noted in this blog, GASB 87 is based on the work done by the FASB and IASB in producing ASC 842 & IFRS 16. However, the GASB put its own spin on matters. In general, definitions are the same (what consitutes a lease, how to determine the term, lease vs. nonlease components, etc.). GASB follows IASB in making all leases finance. Disclosures are somewhat different (including requiring future rents to be reported in 5-year tranches until final expiration). Transition is preferably accomplished by restating leases as of the first comparable year, but cutover on the transition date is permissible if restatemnt is "not practicable."
The trial version of EZLease includes the option to choose GASB accounting. For more information about EZLease, please contact us.