Post written by Michael Juby, Head of Business Development at DebtBook. Published by Forbes on November 10, 2021.
GASB-87, a new lease accounting standard for governmental entities, requires leases to be reported on the face of the financial statements and eliminates distinction between operating and capital leases. To comply, organizations must reevaluate contractual obligations to determine if they fall under the scope of the new guidance. The new standard applies to reporting periods beginning after June 15, 2021.
GASB-87 will create a significant compliance burden and additional work for many finance teams who are already understaffed and overwhelmed. To help finance teams navigate the requirements of implementing GASB-87, I’ve broken down the process into nine steps: