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Understanding and complying with lease accounting standards

GASB 87

RFP

CT-2022-lease-agreementIn 2017, the accounting standards boards came together and decided that the way we account for leases needed to be updated to reflect the value of the asset for government entities. GASB 87 is the new lease standard for state and local governments, higher education, and public hospitals and healthcare providers.

Not becoming compliant with the new standard can lead to an unfavorable audit rating and subsequent reduction in a bond rating. Leases were traditional not part of an agencies reporting requirements, however with the introduction of GASB 87 that changed.

Preparing for GASB-87 implementation and compliance is time consuming and can be confusing. Grant Thornton can help government entities fully understand these changes, determine proper materiality thresholds, catch all embedded leases, and create error-proof lease review services to maintain GASB-87 compliance.

GASB documents for more information: