GASB offers implementation guide on lease accounting

The Governmental Accounting Standards Board has released questions and answers about the recent standard on accounting and financial reporting for leases by state and local governments.

Implementation Guide No. 2019-3, Leases, addresses a variety of questions about how to apply the provisions of GASB Statement No. 87, Leases, including scope and applicability; determining the term of a lease; determining if a lease qualifies for the short-term lease exception; and recognition, measurement and disclosure by lessees.

Other topics include recognition, measurement and disclosure by lessors; accounting for contracts with multiple components and contract combinations; accounting for modifications and terminations of leases, along with sale-leasebacks, lease-leasebacks and intra-entity leases.

The guidance is applicable to all state and local governments that follow U.S. GAAP when preparing their financial statements.

The guide is available for download at no charge. Printed copies will be available through the GASB Store in the weeks ahead.

GASB logo at headquarters in Norwalk, Connecticut
GASB headquarters in Norwalk, Connecticut

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