August 15, 2019
Published: Journal of Accountancy
GASB issued an implementation guide Thursday that contains questions and answers about the board’s new lease accounting standard for state and local governments.
Implementation Guide No. 2019-3, Leases, provides guidance for preparers on how to apply the rules in GASB Statement No. 87, Leases, 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.
– Sale-leasebacks, lease-leasebacks, and intra-entity leases.
The questions and answers in the guide constitute Category B authoritative guidance under GAAP.