U.S. cities and states will have an extra 18 months to prepare for a major change in lease accounting, the government-accounting rulemaker said Friday.
The Governmental Accounting Standards Board also delayed by a year the effective dates for eight other accounting rule changes, including those for fiduciary activities, conduit debt obligations, and major equity interests.
- Municipal and state governments were set to adopt the new lease accounting rules this year, and government accountants sought the relief because their work has been hampered by stay-at-home orders during the coronavirus pandemic.
- Under the new lease rules, known as Statement No. 87, cities, counties, and states must list the value of leased assets and total liabilities on their financial statements, to include vehicles, office space, and equipment. Public companies adopted similar rules in 2019.
- The GASB also delayed the effective date of guidance related to the accounting change, Guide No. 2019-3, Leases.