Window to the sky with walls creating a geometric pattern.

The proper identification of lease agreements is critical to the adoption of GASB Statement No. 87, Leases (GASB 87). Luckily, most agencies will already be aware of most of their lease agreements. These include typical building leases, truck or equipment rentals, laptops/copiers, etc., but what about the not-so-obvious leases of which the accounting department is unaware? These include leases that are "hidden" within an agency's non-standard lease agreements, such as service contracts. These leases are called embedded leases, and they also need to be recorded as part of an agency's adoption of GASB 87. While this is a challenge and an undertaking, throughout this article, we will discuss how to 1) narrow down which contacts should be examined and 2) how to determine if those contacts contain an embedded lease.

Related FORsights

Apr 15, 2022

Debunking ESG Myths

Some organizations have concerns about whether putting effort into ESG programs is worthwhile. Read on for a look at a few myths about ESG.

Read More

Let's Connect

Subscribe to our content or get in touch with us today

Subscribe Contact Us