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GASB 87 & 96 - Lease Accounting

UPDATE: Due to the COVID-19 pandemic the Governmental Accounting Standards Board (GASB) voted unanimously to delay the implementations of these GASBs for one year. The effective date for GASB 87 (Leases) implementation will now be July 1, 2021 for fiscal year (FY) 2022. The effective date for GASB 96 (Subscription-Based Information Technology Arrangements) implementation will now be July 1, 2022 for fiscal year (FY) 2023. Current accounting guidelines for operating and capital lease will remain until June 30, 2021. All short-term, long-term and contingent rentals will continue to be paid as they are today throughout FY 2021. Click here to view the memo from our office. 

Guidance and Helpful Links                                 

GASB Statement No. 87 - Leases                                                             

GASB 87 Implementation Guide No. 2019-3, Leases

GASB 87 Implementation Guide No. 2021-1, Implementation Guidance Update-2021

GASB 87 Lease Accounting Checklist                                                                       

GASB 87 Lease Accounting Questions & Answers                                                                                                                                  

How to Create a Leased Asset                                                           

GASB 87 New Lease Expenditure GLs (Effective July 1, 2021)                               

Asset Class Listing (Effective July 1, 2021)

GASB Statement No. 96 - Subscription-Based Information Technology Arrangements

GASB 96 Guide

 

3.09 Lease Reporting Reconciliation Support

3.09 Lease Reporting Package Step-by-Step Procedures (PDF)

To Change/Transfer Asset Class - Without Budget or Cash Impact (PDF)

To Add Value/Capitalize a Leased Asset - ABZON (PDF)

To Reduce Asset Value (Partial Retirement) OR Retirement of Leased Asset - ABAVN (PDF)

  • Note: Use transaction code AB08 to reverse Asset Documents

Part 1 Reconciliation File Overview (Video)

Part 2 Monthly Reconciliation Distribution Report - BOBJ Tutorial (Video)

Part 3 Reconciling GL to Payment Schedule (Video)

Part 4 Reconciliation Potential Difficulties and How to Handle (Video)

 

3.11 SBITA Reporting Reconciliation Support

3.11 Reporting Package Reconciliation Walk-through (Video)

 

Interest Rates

Guidance for Implicit Interest Rates

     Real Estate

        IRS Implicit Rates for Real Estate

     Equipment and Machinery

        Implicit Rates for Machinery and Equipment

        Federal Reserve Prime Rate "Bank Prime Loan" Rate

    SBITA

       Federal Reserve Prime Rate "Bank Prime Loan" Rate

Memos

GASB 87 Lease Implementation Guidance Update (06-25-2021)
 

Video Tutorials

GASB 87 Implementation

Step 1: GASB 87 Lease Implementation

Step 2: Lease Calculator for GASB 87

Step 3: Amortization Schedules in Lease Implementation File

Step 4: Setting Up Data to Create Asset Schedule for SCEIS

Step 5: Verifying the Create Asset Tab is Correct

Step 6: ABZON Tab

Steps 7 - 10: Completing GASB 87

GASB 87 Q&A June 22, 2022

 

GASB 96 Implementation

GASB 96 Overview

GASB 96 First Steps

Example Contract Review and Implementation File Setup

Prepaid SBITAs: How to Handle During Implementation

Mistakes Made in Submission of Implementation File

GASB 96 Q&A May 17, 2022

GASB 96 Q&A May 24, 2022

GASB 96 Q&A June 3, 2022