GASB 87: lessor accounting with building lease example
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GASB 87: lessor accounting with building lease example

GASB 87 leases series: podcast 3

Authored by Susannah Filipovic

Governmental Accounting Standards Board (GASB) Statement No. 87 will alter accounting rules and financial reporting requirements for how governmental entities report on leases. The lessor accounting perspective is unpacked in this Baker Tilly podcast presented by our public sector practice.

GASB 87 is effective for reporting periods beginning in years after Dec. 15, 2019. It is important for local and state governments, municipal utilities and other public sector entities to understand now how the GASB 87 changes to lease reporting will impact a lessor’s initiation of a lease and its subsequent recognition and measurement – for both assets and deferred inflow.

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In addition to the overview on lessor accounting, governmental lessors will also walk through an example of a building lease featuring crucial components of GASB 87 lease reporting:

  • Identifying the lease term
  • Assumptions for lease liability calculation
  • Revenue amortization methods including annualized receipt schedule and straight-line lease revenue recognition
  • Initial and annualized year journal entries for government funds, entity-wide statements and enterprise funds
  • Disclosures required when a lease term ends and grouping options

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: lessee accounting with bus lease example