State, Local Gov’ts Urged to Prepare for Lease Accounting Change

State and local governments should begin planning now for an upcoming change in accounting standards that will place long-term leases for buildings, vehicles, and equipment on their financial statements.

The government accounting standard takes effect in less than two years and is expected to to provide greater transparency into government leasing activities.

“This is the year to start getting their hands around this,” said Heather Acker, who leads Baker Tilly Virchow Krause LLP’s public sector professional practice, Aug. 14 during an American Institute of CPAs’ government accounting and auditing conference in Washington.

Much like publicly traded companies, which face ...