GASB Releases Implementation Guide on Accounting for Leases

The Governmental Accounting Standards Board (GASB) has issued Implementation Guide No. 2019-3, Leases. Implementation Guide No. 2019-3 contains questions and answers about GASB Statement No. 87, Leases, the new standard on accounting and financial reporting for leases.

Accounting for Leases

Implementation Guide No. 2019-3 provides guidance in question and answer format to many questions about how to apply the provisions of GASB Statement No. 87, 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; and
  • Sale-leasebacks, lease-leasebacks, and intra-entity leases.

GASB Implementation Guides are intended to clarify, explain, or elaborate on the requirements of Board pronouncements. The questions and answers discussed in GASB Implementation Guides constitute Category B authoritative guidance under generally accepted accounting principles (GAAP). The guidance is applicable to all state and local governments that follow GAAP when preparing their financial statements.

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