States, Cities Get Lease Accounting Guide Ahead of Rule Change

Cities, counties, and states received guidance from the Governmental Accounting Standards Board to help prepare for an overhaul of leasing rules.

The board-approved guide, issued Aug. 15, includes examples and more than 70 question-and-answers on topics like calculating the discount rate used to estimate future lease payments, accounting for power purchase arrangements, and determining the lease term.

• The new rules, known as Statement 87, follow a single approach to leases and require governments to report their leased assets and liabilities on the financial statement.
• “When you pull up 87, this should be right beside it,” David Bean, GASB’s director ...