States, Cities Seek Lease-Accounting Relief Amid Virus Outbreak

Local and state governments may get a reprieve from the roll-out of a major change in lease accounting set to take affect this year.

The Governmental Accounting Standards Board said Thursday that it was working to delay a series of accounting rule changes to provide some relief to government accountants whose work has been hampered by the new coronavirus outbreak spreading through the U.S.

Accountants have asked the board to consider delaying new standards, especially for leasing and rule changes related to fiduciary activities. Many state and local government offices remain closed due to the Covid-19 pandemic, and accountants don’t have access to information they need to roll out the new rules, the board said.

The standard setter is considering whether to postpone several other rules, and a complete list will be included in a formal delay proposal that is currently set for April release. Final guidance is slated to be available in May.

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 the financial statement including vehicles, office space, and equipment. Public companies adopted similar rules in 2019.