{"id":2684,"date":"2020-12-20T09:15:23","date_gmt":"2020-12-20T13:15:23","guid":{"rendered":"https:\/\/visuallease.com\/?p=2684"},"modified":"2025-11-24T03:55:45","modified_gmt":"2025-11-24T07:55:45","slug":"what-you-need-to-get-compliant-with-gasb-87","status":"publish","type":"post","link":"https:\/\/visuallease.com\/what-you-need-to-get-compliant-with-gasb-87\/","title":{"rendered":"What You Need to Get Compliant With GASB 87"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/visuallease.com\/what-you-need-to-get-compliant-with-gasb-87\/#Why_a_sense_of_urgency_about_GASB_87_compliance\" >Why a sense of urgency about GASB 87 compliance?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/visuallease.com\/what-you-need-to-get-compliant-with-gasb-87\/#When_and_how_to_move_toward_GASB_87_compliance\" >When and how to move toward GASB 87 compliance<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/visuallease.com\/what-you-need-to-get-compliant-with-gasb-87\/#Know_what_to_look_for_in_GASB_87_compliant_software\" >Know what to look for in GASB 87 compliant software<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/visuallease.com\/what-you-need-to-get-compliant-with-gasb-87\/#Put_your_multitasking_skills_to_work_on_GASB_87\" >Put your multitasking skills to work on GASB 87<\/a><\/li><\/ul><\/nav><\/div>\n[vc_row type=&#8221;in_container&#8221; full_screen_row_position=&#8221;middle&#8221; scene_position=&#8221;center&#8221; text_color=&#8221;dark&#8221; text_align=&#8221;left&#8221; overlay_strength=&#8221;0.3&#8243; shape_divider_position=&#8221;bottom&#8221;][vc_column column_padding=&#8221;no-extra-padding&#8221; column_padding_position=&#8221;all&#8221; background_color_opacity=&#8221;1&#8243; background_hover_color_opacity=&#8221;1&#8243; column_shadow=&#8221;none&#8221; column_border_radius=&#8221;none&#8221; width=&#8221;1\/1&#8243; tablet_text_alignment=&#8221;default&#8221; phone_text_alignment=&#8221;default&#8221; column_border_width=&#8221;none&#8221; column_border_style=&#8221;solid&#8221;][vc_raw_js]JTNDc2NyaXB0JTNFJTBBJTI0JTI4JTIyJTIzY3RhX2Rpc3BsYXlfYnRuJTIyJTI5LmF0dHIlMjglMjJocmVmJTIyJTJDJTIwJTIyaHR0cHMlM0ElMkYlMkZ2aXN1YWxsZWFzZS5jb20lMkZnYXNiLXByb2R1Y3QtdG91ciUyMiUyOSUzQiUwQSUyNCUyOCUyNyUyM2N0YV9kaXNwbGF5X3JvdyUyNyUyOS5maW5kJTI4JTI3cCUyNyUyOS50ZXh0JTI4JTI3R0FTQiUyMDIwLU1pbnV0ZSUyMFByb2R1Y3QlMjBUb3VyJTIwV2VkbmVzZGF5cyUyMGF0JTIwMSUzQTMwUE0lMjBFVCUyNyUyOSUzQiUwQSUwQSUzQyUyRnNjcmlwdCUzRQ==[\/vc_raw_js][\/vc_column][\/vc_row][vc_row type=&#8221;full_width_background&#8221; full_screen_row_position=&#8221;middle&#8221; bg_color=&#8221;#002e42&#8243; scene_position=&#8221;center&#8221; text_color=&#8221;dark&#8221; text_align=&#8221;left&#8221; class=&#8221;new_blue_banner&#8221; disable_element=&#8221;yes&#8221; overlay_strength=&#8221;0.3&#8243; shape_divider_position=&#8221;bottom&#8221; shape_type=&#8221;&#8221;][vc_column column_padding=&#8221;no-extra-padding&#8221; column_padding_position=&#8221;all&#8221; background_color_opacity=&#8221;1&#8243; background_hover_color_opacity=&#8221;1&#8243; column_shadow=&#8221;none&#8221; column_border_radius=&#8221;none&#8221; width=&#8221;1\/1&#8243; tablet_text_alignment=&#8221;default&#8221; phone_text_alignment=&#8221;default&#8221; column_border_width=&#8221;none&#8221; column_border_style=&#8221;solid&#8221;][vc_row_inner column_margin=&#8221;default&#8221; text_align=&#8221;left&#8221; class=&#8221;row_banner_cta&#8221;][vc_column_inner column_padding=&#8221;no-extra-padding&#8221; column_padding_position=&#8221;all&#8221; background_color_opacity=&#8221;1&#8243; background_hover_color_opacity=&#8221;1&#8243; column_shadow=&#8221;none&#8221; column_border_radius=&#8221;none&#8221; width=&#8221;1\/1&#8243; column_border_width=&#8221;none&#8221; column_border_style=&#8221;solid&#8221;][vc_raw_html]JTNDcCUyMHN0eWxlJTNEJTIyY29sb3IlM0ElMjNGRkZGJTNCJTIyJTNFR0FTQiUyMDIwLU1pbnV0ZSUyMFByb2R1Y3QlMjBUb3VyJTIwV2VkbmVzZGF5cyUyMGF0JTIwMSUzQTMwUE0lMjBFVCUyNm5ic3AlM0IlMjZuYnNwJTNCJTI2bmJzcCUzQiUyNm5ic3AlM0IlMjZuYnNwJTNCJTIwJTI2bmJzcCUzQiUyMCUyMCUzQyUyRnAlM0UlMEElMEElM0NhJTIwaHJlZiUzRCUyMmh0dHBzJTNBJTJGJTJGdmlzdWFsbGVhc2UuY29tJTJGZ2FzYi1kYWlseS1wcm9kdWN0LXRvdXIlMkYlMjIlM0UlM0NidXR0b24lMjBjbGFzcyUzRCUyMm5ld19idG5fY3RhJTIyJTNFUmVnaXN0ZXIlMjBOb3clM0MlMkZidXR0b24lM0UlM0MlMkZhJTNF[\/vc_raw_html][\/vc_column_inner][\/vc_row_inner][\/vc_column][\/vc_row][vc_row type=&#8221;in_container&#8221; full_screen_row_position=&#8221;middle&#8221; scene_position=&#8221;center&#8221; text_color=&#8221;dark&#8221; text_align=&#8221;left&#8221; overlay_strength=&#8221;0.3&#8243; shape_divider_position=&#8221;bottom&#8221;][vc_column column_padding=&#8221;no-extra-padding&#8221; column_padding_position=&#8221;all&#8221; background_color_opacity=&#8221;1&#8243; background_hover_color_opacity=&#8221;1&#8243; column_shadow=&#8221;none&#8221; column_border_radius=&#8221;none&#8221; width=&#8221;1\/1&#8243; tablet_text_alignment=&#8221;default&#8221; phone_text_alignment=&#8221;default&#8221; column_border_width=&#8221;none&#8221; column_border_style=&#8221;solid&#8221;][vc_column_text]<span style=\"font-weight: 400\"><img decoding=\"async\" class=\"size-large wp-image-2685 aligncenter\" src=\"https:\/\/visuallease.com\/wp-content\/uploads\/2020\/03\/shutterstock_334043390-1024x692.jpg\" alt=\"\" width=\"1024\" height=\"692\" srcset=\"https:\/\/visuallease.com\/wp-content\/uploads\/2020\/03\/shutterstock_334043390-1024x692.jpg 1024w, https:\/\/visuallease.com\/wp-content\/uploads\/2020\/03\/shutterstock_334043390-300x203.jpg 300w, https:\/\/visuallease.com\/wp-content\/uploads\/2020\/03\/shutterstock_334043390-768x519.jpg 768w, https:\/\/visuallease.com\/wp-content\/uploads\/2020\/03\/shutterstock_334043390-1536x1038.jpg 1536w, https:\/\/visuallease.com\/wp-content\/uploads\/2020\/03\/shutterstock_334043390-400x269.jpg 400w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/span><\/p>\n<p><span style=\"font-weight: 400\">As you probably know, all government entities must <\/span><a href=\"https:\/\/visuallease.com\/compliance\/gasb-87\/\"><span style=\"font-weight: 400\">comply with GASB 87<\/span><\/a><span style=\"font-weight: 400\">, the latest lease accounting standard issued by the Governmental Accounting Standards Board, with reporting for the period beginning June 15, 2021.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400\">The new standard affects state, local and municipal governments, along with many organizations in areas of the public sector such as higher education, healthcare and utilities.<\/span><\/p>\n<p><span style=\"font-weight: 400\">The process for ensuring compliance with GASB 87 is a long and complex one, which means there is not a moment to waste between now and the deadline. To ensure success, organizations are advised to be compliant before their reporting deadline.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Why_a_sense_of_urgency_about_GASB_87_compliance\"><\/span><span style=\"font-weight: 400\">Why a sense of urgency about GASB 87 compliance?<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400\">As we discussed in our blog on <\/span><a href=\"https:\/\/visuallease.com\/what-you-need-to-get-compliant-with-gasb-87\/\"><span style=\"font-weight: 400\">4 things you need to know about GASB 87<\/span><\/a><span style=\"font-weight: 400\">, many organizations are still largely unprepared for everything they need to do to meet the compliance requirements.<\/span><\/p>\n<p><span style=\"font-weight: 400\">In fact, our research shows that not long ago, 74% of organizations interested in a GASB 87 lease accounting software solution were only in the initial phases of planning. These organizations have a daunting task ahead of them, with challenges including:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Understanding the full extent of their lease portfolios, often across many different departments and locations across the organization<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Determining what kinds of leases they have and whether those leases must appear on the balance sheet<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Identifying and collecting all the data points needed for lease calculations and footnotes disclosures \u2014 often, originating from different systems and in different formats<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Implementing the new required accounting methodology, such as the new rules for calculating lease liabilities\/assets and receivables\/deferments<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400\">Our research also found that more than half (59%) of organizations preparing for GASB 87 were focused on lease inventory \u2014 a critically important yet preliminary step in achieving compliance.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400\">However, organizations must also consider the tremendous effort that is involved in preparation after they\u2019ve identified all their leases. Any organizations that have not yet prioritized this crucial step must do so before it\u2019s too late.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"When_and_how_to_move_toward_GASB_87_compliance\"><\/span><span style=\"font-weight: 400\">When and how to move toward GASB 87 compliance<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400\">As our accounting partner Baker Tilly advises, now is the time to start planning for implementation. Whether you are just getting started \u2014 or already doing a lease inventory \u2014\u00a0 you need to think about a <\/span><a href=\"https:\/\/visuallease.com\/solutions\/\"><span style=\"font-weight: 400\">software solution<\/span><\/a><span style=\"font-weight: 400\"> for managing the data, performing the necessary calculations and generating reports according to <a href=\"https:\/\/visuallease.com\/gasb-87-summary-page\/\">GASB 87 standards<\/a>.<\/span><\/p>\n<p><span style=\"font-weight: 400\">That\u2019s where lease <\/span><span style=\"font-weight: 400\">management software<\/span><span style=\"font-weight: 400\"> can help you not only meet GASB 87 requirements, but also maintain compliance beyond the initial reporting period.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Know_what_to_look_for_in_GASB_87_compliant_software\"><\/span><span style=\"font-weight: 400\">Know what to look for in GASB 87 compliant software<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400\">When evaluating <a href=\"https:\/\/visuallease.com\/solutions\/lease-management-software\/\">lease accounting software<\/a>, naturally you\u2019ll want to look for a solution that specifically supports GASB 87, which requires all contracts that meet the definition of a lease to be recognized in financial statements and classified as a finance lease.<\/span><\/p>\n<p><span style=\"font-weight: 400\">In addition, to ease the transition to GASB 87 and streamline the lease accounting process, you\u2019ll want to look for a solution with the following capabilities and benefits.<\/span><\/p>\n<p><b>Intuitive and easy to use<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Streamline lease data collection with other business applications, such as ERPs and accounts receivable<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Enable automated calculations and financial reports<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Support configurable data fields and reports to match your compliance requirements and organizational needs<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Centralize all your lease information within one system<\/span><\/li>\n<\/ul>\n<p><b>Robust, best-in-breed functionality<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Incorporate years of lease financial management experience built within each feature and functionality<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Prioritize future-readiness with ongoing investments in R&amp;D<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Focus on data security and privacy<\/span><\/li>\n<\/ul>\n<p><b>Lease portfolio accuracy\u00a0<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Provide data visualization for visibility into lease details and costs, enabling more informed business decisions<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Streamline lease detail management via system alerts for lease events and changes that could impact your ongoing financial reporting<\/span><\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Put_your_multitasking_skills_to_work_on_GASB_87\"><\/span><span style=\"font-weight: 400\">Put your multitasking skills to work on GASB 87<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400\">With no time to spare, meeting the initial compliance deadline requires going to work immediately on gathering lease portfolio data \u2014 and at the same time, evaluating lease accounting software solutions so you can implement a solution as soon as possible.<\/span><\/p>\n<p><span style=\"font-weight: 400\">To learn more about the requirements of GASB 87 and how your organization can better prepare for compliance, download our free white paper <\/span><a href=\"https:\/\/visuallease.com\/content\/get-compliant-with-gasb87\/\"><span style=\"font-weight: 400\">Get Ready for GASB 87 Lease Accounting<\/span><\/a><span style=\"font-weight: 400\">.\u00a0<\/span>[\/vc_column_text][\/vc_column][\/vc_row]\n","protected":false},"excerpt":{"rendered":"<p>[vc_row type=&#8221;in_container&#8221; full_screen_row_position=&#8221;middle&#8221; scene_position=&#8221;center&#8221; text_color=&#8221;dark&#8221; text_align=&#8221;left&#8221; overlay_strength=&#8221;0.3&#8243; shape_divider_position=&#8221;bottom&#8221;][vc_column column_padding=&#8221;no-extra-padding&#8221; column_padding_position=&#8221;all&#8221; background_color_opacity=&#8221;1&#8243; background_hover_color_opacity=&#8221;1&#8243; column_shadow=&#8221;none&#8221; column_border_radius=&#8221;none&#8221; width=&#8221;1\/1&#8243; tablet_text_alignment=&#8221;default&#8221; phone_text_alignment=&#8221;default&#8221; column_border_width=&#8221;none&#8221; column_border_style=&#8221;solid&#8221;][vc_raw_js]JTNDc2NyaXB0JTNFJTBBJTI0JTI4JTIyJTIzY3RhX2Rpc3BsYXlfYnRuJTIyJTI5LmF0dHIlMjglMjJocmVmJTIyJTJDJTIwJTIyaHR0cHMlM0ElMkYlMkZ2aXN1YWxsZWFzZS5jb20lMkZnYXNiLXByb2R1Y3QtdG91ciUyMiUyOSUzQiUwQSUyNCUyOCUyNyUyM2N0YV9kaXNwbGF5X3JvdyUyNyUyOS5maW5kJTI4JTI3cCUyNyUyOS50ZXh0JTI4JTI3R0FTQiUyMDIwLU1pbnV0ZSUyMFByb2R1Y3QlMjBUb3VyJTIwV2VkbmVzZGF5cyUyMGF0JTIwMSUzQTMwUE0lMjBFVCUyNyUyOSUzQiUwQSUwQSUzQyUyRnNjcmlwdCUzRQ==[\/vc_raw_js][\/vc_column][\/vc_row][vc_row type=&#8221;full_width_background&#8221; 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