What is a Lease Footnote Disclosure Table?

Purpose of the Lease Footnote Disclosure Table

The lease footnote disclosure provides transparency by outlining both qualitative and quantitative lease data. It supports financial clarity, helps meet compliance obligations, and enables stakeholders to assess lease-related risks and obligations.

What’s Typically Included?

While formats vary by entity type and standard applied, a lease footnote disclosure table often includes:

• Lease classification: Finance vs. operating leases
• Lease term lengths and renewal options
• Future lease payment schedules, broken out by year
• Discount rates used for present value calculations
• Right-of-use asset values and lease liabilities
• Variable lease payments or non-cancellable terms, if applicable
  
  

Why it Matters in Public Finance

For governments, nonprofits, healthcare providers, and higher education institutions, lease footnote disclosures are especially important. They:

• Demonstrate compliance with GASB 87 or ASC 842
• Promote transparency around long-term commitments
• Help leadership plan for cash flow and budgeting needs

What's important here?

A lease footnote disclosure table is a financial reporting requirement that summarizes an organization’s lease activity. It ensures transparency, supports compliance, and helps stakeholders understand the financial impact of lease obligations, particularly in the public finance sector.