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GASB 87: lessee accounting with bus lease example

GASB 87 leases series: podcast 2

Authored by Susannah Filipovic

During this podcast on lessee accounting under Statement No. 87 from the Governmental Accounting Standards Board (GASB), Baker Tilly shares a lease accounting overview and bus lease example from the lessee’s perspective.

Public sector organizations, state and local governments and community-owned utilities must learn how GASB 87 will affect their lease contracts. Now is the right time to gain this understanding as the standard is effective for reporting periods beginning in years after Dec. 15, 2019.

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The impact of GASB 87 will be felt from the lessee’s initiation of the lease through the subsequent recognition and measurement – for both assets and liabilities.

Using the example of a governmental entity involved in a bus lease contract, Baker Tilly public sector specialists will cover these important topics for lessees facing GASB 87 lease reporting changes:

  • Identifying the lease term under GASB 87
  • Assumptions for lease liability calculation
  • Annualized payment schedule
  • Initial and annualized year journal entries for government funds, entity-wide statements and enterprise funds
  • Required disclosures at the end of the lease term
  • Maturity analysis of all future lease payments

For more information on this topic, or to learn how Baker Tilly public sector specialists can help, contact our team.

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GASB 87: lease term overview, importance and calculation