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GASB issues lease accounting implementation guide

By Ken Tysiac

Please note: This item is from our archives and was published in 2019. It is provided for historical reference. The content may be out of date and links may no longer function.

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GASB issued an implementation guide Thursday that contains questions and answers about the board’s new lease accounting standard for state and local governments.

Implementation Guide No. 2019-3, Leases, provides guidance for preparers on how to apply the rules in 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.
  • Recognition, measurement, and disclosure by lessees.
  • Recognition, measurement, and disclosure by lessors.
  • Accounting for contracts with multiple components and contract combinations.
  • Accounting for modifications and terminations of leases.
  • Sale-leasebacks, lease-leasebacks, and intra-entity leases.

The questions and answers in the guide constitute Category B authoritative guidance under GAAP.

— Ken Tysiac (Kenneth.Tysiac@aicpa-cima.com) is the JofA’s editorial director.