This content was published prior to the merger of equals between BKD and DHG on June 1, 2022. See all FORsights for the most up-to-date articles, webinars, and videos.
A 2022 Roadmap to GASB 87
The lease accounting standard, GASB 87 ("the Standard") is now effective for fiscal years beginning after June 15, 2021, and all reporting periods thereafter. While the Standard was not released recently, many organizations are still navigating the implications and questioning what is next.
In starting their journey to adopt the Standard, non-profits and government entities should contemplate the challenges they may face. Do they have a thorough understanding of their lease portfolio, how will they obtain key lease data required for calculations and how will they complete the calculations? For example, using Microsoft Excel might not provide the tools needed as opposed to implementing a more robust system. To learn some dos and don'ts of implementation and selecting a vendor, view our webinar Implementation Challenges for GASB 87, Leases.
In addition to learning what challenges may be ahead and obstacles that your entity should be prepared to face, implementing your strategy can also come with its own set of considerations. To learn practical steps for success and how to get started with software system implementation, read our article Software Implementation Considerations for GASB 87, Leases.
As many have already gone through adoption or are in the process of doing so, it is critical to identify embedded leases or hidden leases, as well as analyze leased assets. To learn how to apply a threshold to lease agreements and utilize enablers to assist districts and divisions in the identification of leases on a go-forward basis, review our webinar Considerations for Adoption and Best Practices for GASB 87. To discover more about hidden leases under GASB 87, read our article Hidden Leases: Tips to Uncover Embedded Leases Under GASB 87.
We have also provided a general overview of the new lease accounting in our article https://www.dhg.com/article/lease-accounting-understanding-the-implementation-of-gasb-87
DHG Government. No matter where your government entity is in your journey with GASB 87, DHG is here to help. We have practiced professionals ready to assess your current standing and guide you on your leases journey.
