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[Video] GASB 87: Do You Have Your Implementation Plan Ready?

In 2017, the Government Accounting Standards Board (GASB) issued Statement No. 87, Leases, which introduced significant changes to the financial accounting & reporting model for government entities.

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In 2017, the Government Accounting Standards Board (GASB) issued Statement No. 87, Leases, which introduced significant changes to the financial accounting & reporting model for government entities.

In 2017, the Government Accounting Standards Board (GASB) issued Statement No. 87, Leases, which introduced significant changes to the financial accounting & reporting model for government entities.

GASB 87 requires all government agencies to report leases as financing transactions. The new standard aims to increase accuracy and transparency of lease obligations in government financial statements.

This standard is effective for periods beginning after December 15, 2019, so time is running out for organizations to put their implementation plans into action.

As available resources are limited for any government entity, identifying all leased assets throughout the organization has proven to be a challenging task. Prior to GASB 87, most agencies did not need a system for tracking operating leases like they do for fixed assets. As a result, these organizations are faced with re-collecting and categorizing the leasing information needed in order to be compliant with this standard.

One of the main issues is that many small government agencies lack the infrastructure needed to support the complexity of this initiative and will often require specialized software to track and manage the applicable leasing information. Without the right technical expertise on staff, evaluating the different software solutions and finding the right one for your unique needs could take much longer than anticipated.

Although GASB encouraged early application, a recent survey by LeaseQuery found that 71% of government agencies are only in the early stages of assessing an implementation plan, and only 14% have begun putting that plan into action.

With the deadline approaching, organizations can’t put off preparation much longer.

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