{"id":7627,"date":"2025-05-27T11:43:08","date_gmt":"2025-05-27T15:43:08","guid":{"rendered":"https:\/\/visuallease.com\/?p=7627"},"modified":"2025-07-14T12:52:49","modified_gmt":"2025-07-14T16:52:49","slug":"gasb-87-summary-page","status":"publish","type":"post","link":"https:\/\/visuallease.com\/gasb-87-summary-page\/","title":{"rendered":"What is GASB 87 &amp; What Do I Need to Know"},"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\/gasb-87-summary-page\/#GASB_87_Summary\" >GASB 87 Summary<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/visuallease.com\/gasb-87-summary-page\/#Who_is_subject_to_GASB_87\" >Who is subject to GASB 87?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/visuallease.com\/gasb-87-summary-page\/#How_does_GASB_87_impact_lessees_and_lessors\" >How does GASB 87 impact lessees and lessors?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/visuallease.com\/gasb-87-summary-page\/#Was_GASB_87_postponed\" >Was GASB 87 postponed?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/visuallease.com\/gasb-87-summary-page\/#What_does_GASB_87_do\" >What does GASB 87 do?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/visuallease.com\/gasb-87-summary-page\/#What_did_GASB_87_replace\" >What did GASB 87 replace?<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/visuallease.com\/gasb-87-summary-page\/#How_Does_GASB_87_Change_the_Balance_Sheet\" >How Does GASB 87 Change the Balance Sheet?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/visuallease.com\/gasb-87-summary-page\/#Definition_of_a_Lease_Under_GASB_87\" >Definition of a Lease Under GASB 87<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/visuallease.com\/gasb-87-summary-page\/#Examples_of_Leased_Assets_Under_GASB_87\" >Examples of Leased Assets Under GASB 87<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/visuallease.com\/gasb-87-summary-page\/#Lease_exemptions_under_GASB_87\" >Lease exemptions under GASB 87<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/visuallease.com\/gasb-87-summary-page\/#Lease_Accounting_for_Lessees\" >Lease Accounting for Lessees<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/visuallease.com\/gasb-87-summary-page\/#Lease_Accounting_for_Lessors\" >Lease Accounting for Lessors<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/visuallease.com\/gasb-87-summary-page\/#Lessee_disclosure_reports_must_provide\" >Lessee disclosure reports must provide:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/visuallease.com\/gasb-87-summary-page\/#Lessor_disclosure_reports_must_provide\" >Lessor disclosure reports must provide:<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/visuallease.com\/gasb-87-summary-page\/#GASB_87_Compliance_Software\" >GASB 87 Compliance Software<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/visuallease.com\/gasb-87-summary-page\/#GASB_87_Software_Checklist\" >GASB 87 Software Checklist<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/visuallease.com\/gasb-87-summary-page\/#What_To_Look_For_in_GASB_87-Complaint_Lease_Accounting_Software\" >What To Look For in GASB 87-Complaint Lease Accounting Software<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/visuallease.com\/gasb-87-summary-page\/#Evaluating_lease_accounting_technology\" >Evaluating lease accounting technology<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/visuallease.com\/gasb-87-summary-page\/#Compliance_starts_with_a_lease_subledger\" >Compliance starts with a lease subledger<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/visuallease.com\/gasb-87-summary-page\/#Lease_reassessments_and_remeasurements\" >Lease reassessments and remeasurements<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-21\" href=\"https:\/\/visuallease.com\/gasb-87-summary-page\/#Alerts_approvals_internal_controls_and_audit_trails\" >Alerts, approvals, internal controls and audit trails<\/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;]<div class=\"img-with-aniamtion-wrap center\" data-max-width=\"100%\" data-border-radius=\"none\"><div class=\"inner\"><img decoding=\"async\" data-shadow=\"none\" data-shadow-direction=\"middle\" class=\"img-with-animation \" data-delay=\"0\" height=\"784\" width=\"1500\" data-animation=\"none\" src=\"https:\/\/visuallease.com\/wp-content\/uploads\/2022\/02\/MicrosoftTeams-image-30.jpg\" srcset=\"https:\/\/visuallease.com\/wp-content\/uploads\/2022\/02\/MicrosoftTeams-image-30.jpg 1500w, https:\/\/visuallease.com\/wp-content\/uploads\/2022\/02\/MicrosoftTeams-image-30-300x157.jpg 300w, https:\/\/visuallease.com\/wp-content\/uploads\/2022\/02\/MicrosoftTeams-image-30-1024x535.jpg 1024w, https:\/\/visuallease.com\/wp-content\/uploads\/2022\/02\/MicrosoftTeams-image-30-768x401.jpg 768w\" sizes=\"100vw\" alt=\"What is GASB 87\" \/><\/div><\/div><div class=\"divider-wrap\"><div style=\"height: 40px;\" class=\"divider\"><\/div><\/div>[vc_column_text]\n<h2 style=\"text-align: center\"><span class=\"ez-toc-section\" id=\"GASB_87_Summary\"><\/span>GASB 87 Summary<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>&nbsp;<\/p>\n<p>Issued by the Governmental Accounting Standard\u2019s Board in June of 2017,\u00a0<a href=\"https:\/\/gasb.org\/page\/pronouncement?pageId=\/standards-and-guidance\/pronouncements\/summary-statement-no-87.html\">GASB 87<\/a>\u00a0is the new lease accounting standard for US government entities. All entities that prepare financial statements in accordance with GASB standards must comply with GASB 87 for fiscal years beginning after June 15, 2021.<\/p>\n<h3 class=\"vc_custom_heading\"><span class=\"ez-toc-section\" id=\"Who_is_subject_to_GASB_87\"><\/span>Who is subject to GASB 87?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>State, local and municipal governments<\/li>\n<li>Public benefit corporations and authorities<\/li>\n<li>Public employee retirement systems<\/li>\n<li>Public utilities, hospitals and other healthcare providers<\/li>\n<li>Public colleges and universities<\/li>\n<\/ul>\n<h3 class=\"vc_custom_heading\"><span class=\"ez-toc-section\" id=\"How_does_GASB_87_impact_lessees_and_lessors\"><\/span>How does GASB 87 impact lessees and lessors?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li><strong>Lessees:<\/strong> Must recognize lease liabilities and intangible right of use (ROU) lease assets on their statements<\/li>\n<li><strong>Lessors:<\/strong> Must recognize lease receivables and deferred inflows of resources on their financial statements<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Was_GASB_87_postponed\"><\/span>Was GASB 87 postponed?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The Governmental Accounting Standards Board postponed the implementation date for GASB 87 back in May of 2020. The extension was implemented in order to give CPA firms and entities an opportunity to prepare to implement the new standard after disruptions during the COVID-19 pandemic.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"What_does_GASB_87_do\"><\/span><span id=\"What_does_GASB_87_do\" class=\"ez-toc-section\"><\/span><span id=\"What_does_GASB_87_do\" class=\"ez-toc-section\"><\/span>What does GASB 87 do?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>In 2017, the Governmental Accounting Standards Board (<a href=\"https:\/\/www.gasb.org\/\">GASB<\/a>) published the lease accounting standard GASB 87. The organization is the source of the accounting principles (GAAP) used by state and local governments in the United States.<\/p>\n<p>GASB 87 was created to increase visibility into lease obligations and remove ambiguity around lease obligations in financial disclosures, particularly balance sheets and income statements.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"What_did_GASB_87_replace\"><\/span><span id=\"What_did_GASB_87_replace\" class=\"ez-toc-section\"><\/span><span id=\"What_did_GASB_87_replace\" class=\"ez-toc-section\"><\/span>What did GASB 87 replace?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>GASB 87 replaces the current operating and capital lease categories with a single model for lease accounting based on a definition of leases as contracts that convey control of the right to use a non-financial asset. The new rules require lessees to recognize a lease liability and an intangible asset while lessors are required to recognize lease receivables and a deferred inflow of resources on their financial statements.[\/vc_column_text]<div class=\"divider-wrap\"><div style=\"height: 40px;\" class=\"divider\"><\/div><\/div>[vc_column_text]\n<div class=\"wpb_text_column wpb_content_element \">\n<div class=\"wpb_wrapper\">\n<h2 style=\"text-align: center\"><span class=\"ez-toc-section\" id=\"How_Does_GASB_87_Change_the_Balance_Sheet\"><\/span>How Does GASB 87 Change the Balance Sheet?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>&nbsp;<\/p>\n<p>GASB 87 requires organizations to now record most leases on the balance sheet.<\/p>\n<p>For most organizations, this is a massive administrative lift. Leases are complex legal documents, sometimes hundreds of pages, which require trained professionals to negotiate and interpret; with countless obligations, clauses and critical dates to keep track of.<\/p>\n<p>Leases are also dynamic. Terms change all the time as organizations take on new spaces, scale back or renegotiate, and you must account for every change under GASB 87.<\/p>\n<p><strong>To produce accurate and compliant lease accounting reports, the following information needs to be collected and tracked:<\/strong><\/p>\n<\/div>\n<\/div>\n<div id=\"fws_6871464deca75\" class=\"wpb_row vc_row-fluid vc_row standard_section \" data-midnight=\"\" data-column-margin=\"default\" data-bg-mobile-hidden=\"\">\n<div class=\"col span_12 left\">\n<div class=\"vc_col-sm-6 wpb_column column_container vc_column_container col no-extra-padding instance-17 instance-2\" data-shadow=\"none\" data-border-radius=\"none\" data-border-animation=\"\" data-border-animation-delay=\"\" data-border-width=\"none\" data-border-style=\"solid\" data-border-color=\"\" data-bg-cover=\"\" data-padding-pos=\"all\" data-has-bg-color=\"false\" data-bg-color=\"\" data-bg-opacity=\"1\" data-hover-bg=\"\" data-hover-bg-opacity=\"1\" data-animation=\"\" data-delay=\"0\">\n<div class=\"vc_column-inner\">\n<div class=\"wpb_wrapper\">\n<div class=\"iwithtext\">\n<div class=\"iwt-text\">\n<ul>\n<li><span id=\"Lease_terms\" class=\"ez-toc-section\"><\/span>Lease terms<\/li>\n<li>Discount rate<\/li>\n<li>Rent payment amounts and dates<\/li>\n<li>Lease option terms<\/li>\n<li>Variable or percentage rent terms<\/li>\n<li>Residual value guarantee terms<\/li>\n<\/ul>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n[\/vc_column_text]<div class=\"divider-wrap\"><div style=\"height: 60px;\" class=\"divider\"><\/div><\/div>[vc_column_text]\n<h2 class=\"vc_custom_heading\" style=\"text-align: center\"><span class=\"ez-toc-section\" id=\"Definition_of_a_Lease_Under_GASB_87\"><\/span>Definition of a Lease Under GASB 87<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>&nbsp;<\/p>\n<p>Under GASB 87, a lease is defined as a contract that conveys the right to use another entity\u2019s nonfinancial asset for a period of time, including:<\/p>\n<ul>\n<li>The ability to obtain the present use of the asset as specified in the contract<\/li>\n<li>The right to control how the underlying asset is used<\/li>\n<\/ul>\n<h3 class=\"vc_custom_heading\"><span class=\"ez-toc-section\" id=\"Examples_of_Leased_Assets_Under_GASB_87\"><\/span>Examples of Leased Assets Under GASB 87<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Some common examples of leased assets recorded under GASB 87 include:<\/p>\n<ul>\n<li>Equipment for day-to-day operations (office equipment, medical equipment, telecommunications equipment, IT equipment)<\/li>\n<li>Vehicles (automobiles, vans, trucks)<\/li>\n<li>Real estate (property, buildings, offices, warehouses)<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Lease_exemptions_under_GASB_87\"><\/span>Lease exemptions under GASB 87<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Somme leases are exempt under GASB 87, such as:<\/p>\n<ul>\n<li>Leases of certain types of intangible assets (e.g., patents, software licenses, the rights to explore for or exploit natural resources such as oil, gas, minerals and similar nonrenewable resources)<\/li>\n<li>Leases of biological assets, including timber, living plants and living animals<\/li>\n<li>Leases of inventory<\/li>\n<li>Service concession agreements<\/li>\n<\/ul>\n[\/vc_column_text][\/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; 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;]<div class=\"divider-wrap\"><div style=\"height: 60px;\" class=\"divider\"><\/div><\/div>[vc_custom_heading text=&#8221;Lease Accounting Calculations Under GASB 87&#8243; font_container=&#8221;tag:h2|text_align:center&#8221;]<div class=\"divider-wrap\"><div style=\"height: 30px;\" class=\"divider\"><\/div><\/div>[vc_row_inner equal_height=&#8221;yes&#8221; content_placement=&#8221;top&#8221; column_margin=&#8221;default&#8221; text_align=&#8221;left&#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\/2&#8243; column_border_width=&#8221;none&#8221; column_border_style=&#8221;solid&#8221;][vc_column_text]\n<h3 style=\"text-align: center\"><span class=\"ez-toc-section\" id=\"Lease_Accounting_for_Lessees\"><\/span>Lease Accounting for Lessees<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Under GASB 87, lessees must recognize a lease liability and a right to use asset for all qualified leases.<\/p>\n<p>\u2022 The<strong> lease liability<\/strong> is generally calculated as the present value of payments the lessee expects to make during the lease term, including any contract renewal options the lessee is reasonably certain to exercise.<\/p>\n<p>\u2022 The <strong>lease asset<\/strong> is calculated as the lease liability plus any prepayments or initial direct costs, minus any lease incentives at or before commencement of the lease.<\/p>\n<p>As payments are made on the lease, the liability amount is reduced and interest expenses are recognized. The asset is amortized over the length of the lease term or over the life of the asset (whichever is shorter), unless the lease contains a purchase option that the lessee has determined is reasonably certain to be exercised, in which case, the lease asset should be amortized over the useful life of the underlying asset.[\/vc_column_text][\/vc_column_inner][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\/2&#8243; column_border_width=&#8221;none&#8221; column_border_style=&#8221;solid&#8221;][vc_column_text]\n<h3 style=\"text-align: center\"><span class=\"ez-toc-section\" id=\"Lease_Accounting_for_Lessors\"><\/span>Lease Accounting for Lessors<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Under GASB 87, lessors must recognize a lease receivable and a deferred inflow of resources on the financial statements. Just as with lessee schedules, the calculations can be complex.<\/p>\n<p>\u2022 At the start of the contract, the lease receivable is generally calculated as the present value of lease payments the lessor expects to receive over the term of the lease, minus any provision for estimated uncollectible amounts.<\/p>\n<p>\u2022 The deferred inflow is calculated as the lease receivable plus any payments made at or prior to the commencement of the lease.<\/p>\n<p>As the lessor receives payments, the lease receivable amount is reduced and interest revenue is recognized. The deferred inflow continues to be recognized as revenue over the life of a lease.[\/vc_column_text][\/vc_column_inner][\/vc_row_inner]<div class=\"divider-wrap\"><div style=\"height: 40px;\" class=\"divider\"><\/div><\/div>[vc_custom_heading text=&#8221;Lease Accounting Remeasurements for GASB 87&#8243; font_container=&#8221;tag:h2|text_align:center|color:%23002e42&#8243;][\/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_row_inner column_margin=&#8221;default&#8221; text_align=&#8221;left&#8221;][vc_column_inner column_padding=&#8221;padding-2-percent&#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_column_text]Organizations remeasure the value of lease assets and liabilities when there is some significant event or material change in circumstances, including:<\/p>\n<ul>\n<li>Modification of a lease term, size or payment obligations \u2014 for example, the extension or expansion of a lease or the exercising of a lease option<\/li>\n<li>Lease contraction due to full or partial lease termination or abandonment \u2014 for example, when an abandoned space is sublet, causing the abandonment of the primary asset<\/li>\n<li>The full or partial impairment of a lease<\/li>\n<\/ul>\n[\/vc_column_text]<div class=\"divider-wrap\"><div style=\"height: 50px;\" class=\"divider\"><\/div><\/div>[vc_column_text]\n<table class=\"table_remeasurements\">\n<thead>\n<tr>\n<th style=\"text-align: center\">Remeasurements type<\/th>\n<th style=\"text-align: center\">Description<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td style=\"text-align: center\"><strong>Modification<\/strong><\/td>\n<td>Any modification of lease term (i.e., change in payment term, extension of lease term, etc.)<\/td>\n<\/tr>\n<tr>\n<td style=\"text-align: center\"><strong>Full Impairment<\/strong><\/td>\n<td>Due to some event, the asset no longer has any value, but the organization still has obligation under the lease.<\/td>\n<\/tr>\n<tr>\n<td style=\"text-align: center\">\u00a0<strong>Partial Impairment<\/strong><\/td>\n<td>Due to some event, the asset still has a value, but the value has been reduced by some amount or percentage.<\/td>\n<\/tr>\n<tr>\n<td style=\"text-align: center\"><strong style=\"font-family: inherit;font-size: inherit\">Full Termination<\/strong><\/td>\n<td>A lessee has ended the lease contract and no longer has the lease liability or asset on the books.<\/td>\n<\/tr>\n<tr>\n<td style=\"text-align: center\"><strong>Partial Termination<\/strong><\/td>\n<td>A lessee reduces the use of some portion of the asset (e.g., reduces total square footage of lease by terminating some portion), which reduces the amount of liability or asset on the books.<\/td>\n<\/tr>\n<tr>\n<td style=\"text-align: center\"><strong>Full Abandonment<\/strong><\/td>\n<td>A lessee decides to no longer use the entire asset as of some specific date; the lease contract is still in place and the asset remains as a liability on the financial statement.<\/td>\n<\/tr>\n<tr>\n<td style=\"text-align: center\"><strong>Partial Abandonment<\/strong><\/td>\n<td>A lessee decides to no longer use a portion of the asset as of some specific date; the asset remains as a liability on the financial statement.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n[\/vc_column_text][\/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_custom_heading text=&#8221;Disclosure Reporting Under GASB 87&#8243; font_container=&#8221;tag:h2|text_align:center&#8221;]<div class=\"divider-wrap\"><div style=\"height: 40px;\" class=\"divider\"><\/div><\/div>[vc_column_text]For both lessees and lessors, GASB 87 now requires disclosure reports that provide aggregated totals and detailed supporting data such as:<\/p>\n<ul>\n<li>Qualitative and quantitative information about leases, including variable payments not included in measurement of liability<\/li>\n<li>Significant assumptions and judgments made when measuring leases<\/li>\n<li>The amounts recognized in financial statements<\/li>\n<\/ul>\n[\/vc_column_text]<div class=\"divider-wrap\"><div style=\"height: 40px;\" class=\"divider\"><\/div><\/div>[vc_row_inner equal_height=&#8221;yes&#8221; content_placement=&#8221;middle&#8221; column_margin=&#8221;default&#8221; text_align=&#8221;left&#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\/2&#8243; column_border_width=&#8221;none&#8221; column_border_style=&#8221;solid&#8221;][vc_column_text]\n<h3><span class=\"ez-toc-section\" id=\"Lessee_disclosure_reports_must_provide\"><\/span>Lessee disclosure reports must provide:<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Fully detailed lease descriptions<\/li>\n<li>Amount of total leased assets \u2014 both gross and net figures<\/li>\n<li>Future lease payment schedules, including interest payments<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Lessor_disclosure_reports_must_provide\"><\/span>Lessor disclosure reports must provide:<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>General descriptions of all lease arrangements<\/li>\n<li>Inflows of resources, including lease and interest revenue recognized in the reporting period<\/li>\n<li>Revenue from variable payment components not included in the lease receivable<\/li>\n<\/ul>\n[\/vc_column_text][\/vc_column_inner][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\/2&#8243; column_border_width=&#8221;none&#8221; column_border_style=&#8221;solid&#8221;]<div class=\"img-with-aniamtion-wrap center\" data-max-width=\"100%\" data-border-radius=\"none\"><div class=\"inner\"><img decoding=\"async\" data-shadow=\"none\" data-shadow-direction=\"middle\" class=\"img-with-animation \" data-delay=\"0\" height=\"572\" width=\"642\" data-animation=\"none\" src=\"https:\/\/visuallease.com\/wp-content\/uploads\/2022\/10\/table-gasb87.png\" srcset=\"https:\/\/visuallease.com\/wp-content\/uploads\/2022\/10\/table-gasb87.png 642w, https:\/\/visuallease.com\/wp-content\/uploads\/2022\/10\/table-gasb87-300x267.png 300w\" sizes=\"100vw\" alt=\"table gasb87\" \/><\/div><\/div>[\/vc_column_inner][\/vc_row_inner][vc_column_text]\n<p style=\"text-align: left\">These new standards require organizations to gather and manage substantial amounts of data to generate disclosure reports related to real estate, equipment, vehicles, land and any other leases an organization holds.<\/p>\n[\/vc_column_text]\r\n    <div class=\"col span_12 section-title text-align-center extra-padding\">\r\n\t\t<h2><span class=\"ez-toc-section\" id=\"GASB_87_Compliance_Software\"><\/span>\n<div class=\"col span_12 section-title text-align-center extra-padding\">\n<h2 style=\"text-align: center\">GASB 87 Compliance Software<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<\/div>\n<\/h2><\/div><div class=\"clear\"><\/div>[\/vc_column][\/vc_row][vc_row type=&#8221;in_container&#8221; full_screen_row_position=&#8221;middle&#8221; equal_height=&#8221;yes&#8221; content_placement=&#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; 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\/2&#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]Visual Lease\u2019s <a href=\"https:\/\/visuallease.com\/compliance\/gasb-87\/\">GASB 87 lease accounting software<\/a> is the perfect tool to keep all of your leases in one single location, while making sure you <a href=\"https:\/\/visuallease.com\/what-you-need-to-get-compliant-with-gasb-87\/\">stay completely GASB 87 compliant<\/a>.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"GASB_87_Software_Checklist\"><\/span>GASB 87 Software Checklist<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>When planning and preparing for GASB 87 and evaluating lease accounting software, 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.<\/p>\n<p>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.[\/vc_column_text][\/vc_column][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\/2&#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;]<div class=\"img-with-aniamtion-wrap right\" data-max-width=\"100%\" data-border-radius=\"none\"><div class=\"inner\"><img decoding=\"async\" data-shadow=\"none\" data-shadow-direction=\"middle\" class=\"img-with-animation \" data-delay=\"0\" height=\"539\" width=\"659\" data-animation=\"fade-in\" src=\"https:\/\/visuallease.com\/wp-content\/uploads\/2022\/10\/gasb-87-circle.png\" srcset=\"https:\/\/visuallease.com\/wp-content\/uploads\/2022\/10\/gasb-87-circle.png 659w, https:\/\/visuallease.com\/wp-content\/uploads\/2022\/10\/gasb-87-circle-300x245.png 300w\" sizes=\"100vw\" alt=\"gasb 87 circle\" \/><\/div><\/div>[\/vc_column][\/vc_row][vc_row type=&#8221;in_container&#8221; full_screen_row_position=&#8221;middle&#8221; equal_height=&#8221;yes&#8221; content_placement=&#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; 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; font_color=&#8221;#000000&#8243; column_shadow=&#8221;none&#8221; column_border_radius=&#8221;5px&#8221; width=&#8221;1\/1&#8243; tablet_text_alignment=&#8221;default&#8221; phone_text_alignment=&#8221;default&#8221; column_border_width=&#8221;none&#8221;][vc_column_text]<strong>Simplify Lease Data Integration and Compliance<\/strong><\/p>\n<ul>\n<li style=\"list-style-type: none\">\n<ul>\n<li>Streamline lease data collection with other business applications, such as ERPs and accounts receivable<\/li>\n<li>Enable automated calculations and financial reports<\/li>\n<li>Support configurable data fields and reports to match your compliance requirements and organizational needs<\/li>\n<li>Centralize all your lease information within one system<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><strong>Designed with Financial Expertise and Future Readiness in Mind<\/strong><\/p>\n<ul>\n<li>Incorporate years of lease financial management experience built within each feature and functionality<\/li>\n<li>Prioritize future-readiness with ongoing investments in R&amp;D<\/li>\n<li>Focus on data security and privacy<\/li>\n<\/ul>\n<p><strong>Improve Visibility and Control Over Lease Management<\/strong><\/p>\n<ul>\n<li>Provide data visualization for visibility into lease details and costs, enabling more informed business decisions<\/li>\n<li>Streamline lease detail management via system alerts for lease events and changes that could impact your ongoing financial reporting<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<h2 style=\"text-align: center\"><span class=\"ez-toc-section\" id=\"What_To_Look_For_in_GASB_87-Complaint_Lease_Accounting_Software\"><\/span>What To Look For in GASB 87-Complaint Lease Accounting Software<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Spreadsheets aren\u2019t designed to handle the dynamics and complexity that impact the accounting calculations \u2014 lease transactions can result in hundreds of permutations and calculations. Most likely your current lease process has gaps that will need to be addressed when moving to adopt GASB 87. Many of these gaps can be addressed through the use of technology. Lease accounting software can help you meet GASB 87 requirements and maintain compliance beyond the initial reporting period.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Evaluating_lease_accounting_technology\"><\/span>Evaluating lease accounting technology<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The right\u00a0<a href=\"https:\/\/visuallease.com\/solutions\/lease-accounting-software\/\">lease accounting software solution<\/a>\u00a0provides you with the proper tools to manage lease data and changes, perform the necessary calculations and generate reports according to GASB standards. In addition, choosing lease accounting and management software will help to further streamline the accounting process and ensure ongoing GASB compliance.<\/p>\n<p>Your lease accounting and management software should offer not only ongoing compliance via modification, impairment, termination capabilities but also:[\/vc_column_text][vc_row_inner equal_height=&#8221;yes&#8221; content_placement=&#8221;middle&#8221; column_margin=&#8221;default&#8221; text_align=&#8221;left&#8221;][vc_column_inner column_padding=&#8221;padding-3-percent&#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\/2&#8243; column_border_width=&#8221;none&#8221; column_border_style=&#8221;solid&#8221;][vc_column_text]\n<ul>\n<li style=\"text-align: left\">Lessee and lessor accounting<\/li>\n<li style=\"text-align: left\">Disclosure reporting capabilities<\/li>\n<li style=\"text-align: left\">Automated calculations<\/li>\n<li style=\"text-align: left\">Journal entries<\/li>\n<\/ul>\n[\/vc_column_text][\/vc_column_inner][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\/2&#8243; column_border_width=&#8221;none&#8221; column_border_style=&#8221;solid&#8221;][vc_column_text]\n<ul>\n<li>Lease amortization schedule<\/li>\n<li>Roll-forward reporting<\/li>\n<li>Handling for regulated leases<\/li>\n<li>Handling for short-term leases<\/li>\n<\/ul>\n[\/vc_column_text][\/vc_column_inner][\/vc_row_inner][vc_column_text]\n<h3 style=\"text-align: left\"><span class=\"ez-toc-section\" id=\"Compliance_starts_with_a_lease_subledger\"><\/span>Compliance starts with a lease subledger<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>GASB 87 introduces a much higher level of scrutiny. Now, organizations have significantly more lease information to track, update, calculate and report on. Given the cross-functional, complex and evolving nature of lease language, any lease accounting solution should start with a strong lease management software to act as a single system of record for all lease data and lease financials.[\/vc_column_text][vc_row_inner equal_height=&#8221;yes&#8221; content_placement=&#8221;middle&#8221; column_margin=&#8221;default&#8221; text_align=&#8221;left&#8221;][vc_column_inner column_padding=&#8221;padding-3-percent&#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\/2&#8243; column_border_width=&#8221;none&#8221; column_border_style=&#8221;solid&#8221;][vc_column_text]\n<ul>\n<li>Configurable tools to handle any lease scenario across any asset type to maintain a reliable, up-to-date source for qualitative lease details such as terms, changes and dates<\/li>\n<li>Integration capabilities to other cross-functional systems to maintain a single source of truth<\/li>\n<li>A comprehensive audit trail to track and reconcile any changes<\/li>\n<li>Defined user roles for anyone that touches leases and integrated guardrails to ensure any changes are in accordance with internal accounting procedures<\/li>\n<\/ul>\n[\/vc_column_text][\/vc_column_inner][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\/2&#8243; column_border_width=&#8221;none&#8221; column_border_style=&#8221;solid&#8221;]<div class=\"img-with-aniamtion-wrap center\" data-max-width=\"100%\" data-border-radius=\"none\"><div class=\"inner\"><img decoding=\"async\" data-shadow=\"none\" data-shadow-direction=\"middle\" class=\"img-with-animation \" data-delay=\"0\" height=\"489\" width=\"525\" data-animation=\"none\" src=\"https:\/\/visuallease.com\/wp-content\/uploads\/2022\/10\/gasb-87-solutions-circle.png\" srcset=\"https:\/\/visuallease.com\/wp-content\/uploads\/2022\/10\/gasb-87-solutions-circle.png 525w, https:\/\/visuallease.com\/wp-content\/uploads\/2022\/10\/gasb-87-solutions-circle-300x279.png 300w\" sizes=\"100vw\" alt=\"gasb 87 solutions circle\" \/><\/div><\/div>[\/vc_column_inner][\/vc_row_inner][vc_column_text]\n<p class=\"vc_custom_heading\">A lease software solution helps to streamlines this very complex process by providing automated calculations and workflows to:<\/p>\n[\/vc_column_text][vc_row_inner equal_height=&#8221;yes&#8221; content_placement=&#8221;middle&#8221; column_margin=&#8221;default&#8221; text_align=&#8221;left&#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\/2&#8243; column_border_width=&#8221;none&#8221; column_border_style=&#8221;solid&#8221;]<div class=\"img-with-aniamtion-wrap center\" data-max-width=\"100%\" data-border-radius=\"none\"><div class=\"inner\"><img decoding=\"async\" data-shadow=\"none\" data-shadow-direction=\"middle\" class=\"img-with-animation \" data-delay=\"0\" height=\"526\" width=\"586\" data-animation=\"none\" src=\"https:\/\/visuallease.com\/wp-content\/uploads\/2022\/10\/gasb-87-calculations-circle.png\" srcset=\"https:\/\/visuallease.com\/wp-content\/uploads\/2022\/10\/gasb-87-calculations-circle.png 586w, https:\/\/visuallease.com\/wp-content\/uploads\/2022\/10\/gasb-87-calculations-circle-300x269.png 300w\" sizes=\"100vw\" alt=\"gasb 87 calculations circle\" \/><\/div><\/div>[\/vc_column_inner][vc_column_inner column_padding=&#8221;padding-3-percent&#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\/2&#8243; column_border_width=&#8221;none&#8221; column_border_style=&#8221;solid&#8221;][vc_column_text]\n<ul>\n<li>Ensure that leases and the related assets, liabilities, revenues and expenses are accounted for consistently<\/li>\n<li>Eliminate human error and reliance on formulas and cumbersome spreadsheets \u2022 Ensure accuracy by having all data and calculations in one system<\/li>\n<li>Integrate leases and their pertinent data, such as liabilities, lease assets, interest expenses and revenue inflows, to the financial statements<\/li>\n<li>Automatically generate journal entries and lease amortization schedules using the system data<\/li>\n<\/ul>\n[\/vc_column_text][\/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;]<div class=\"divider-wrap\"><div style=\"height: 40px;\" class=\"divider\"><\/div><\/div>[vc_column_text]\n<h2><span class=\"ez-toc-section\" id=\"Lease_reassessments_and_remeasurements\"><\/span>Lease reassessments and remeasurements<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>With the enhanced level of lease visibility that GASB 87 requires, an organization\u2019s lease accounting must explain all lease changes on the financial statements. This includes additions or subtractions due to new leases, modifications, impairments and terminations, as well as regular amortization.<\/p>\n<p>Accounting for lease remeasurement and reassessments is a common roadblock to sustainable compliance as accounting teams must rely on cross-functional stakeholders adhering to internal procedures as they manage lease modifications.<\/p>\n<p>Using lease technology to organize, update and manage lease data allows you to integrate lease renewals and other modifications into your accounting process, ensuring they are captured accurately and reported in a timely manner.<\/p>\n<p>Roll-forward reports are a valuable tool for meeting this requirement, providing a detailed disclosure of lease financials including period over period changes to lease assets and liabilities.<\/p>\n<p>By choosing a technology platform that automates roll-forward reporting, your organization can streamline data gathering, calculations and reporting while ensuring that the process meets compliance and disclosure requirements.[\/vc_column_text]<div class=\"divider-wrap\"><div style=\"height: 40px;\" class=\"divider\"><\/div><\/div>[vc_row_inner column_margin=&#8221;default&#8221; text_align=&#8221;left&#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\/2&#8243; column_border_width=&#8221;none&#8221; column_border_style=&#8221;solid&#8221;][vc_column_text]\n<h2><span class=\"ez-toc-section\" id=\"Alerts_approvals_internal_controls_and_audit_trails\"><\/span>Alerts, approvals, internal controls and audit trails<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Given the cross-functional nature of lease management, defined user roles and alerts and comprehensive approvals hierarchies are critical to maintaining a single source of truth.<\/p>\n<p>Look for systems that can streamline cross-functional workflows both internally and externally, with project management systems that can notify appropriate stakeholders when upcoming critical dates are near.<\/p>\n<p>Auditability cannot be compromised. Approvals hierarchies are important to make sure that mistakes \u2013 or intentional malfeasance \u2013 are identified. Audit trails must be maintained to track every change.[\/vc_column_text][\/vc_column_inner][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\/2&#8243; column_border_width=&#8221;none&#8221; column_border_style=&#8221;solid&#8221;]<div class=\"img-with-aniamtion-wrap \" data-max-width=\"100%\" data-border-radius=\"none\"><div class=\"inner\"><img decoding=\"async\" data-shadow=\"none\" data-shadow-direction=\"middle\" class=\"img-with-animation \" data-delay=\"0\" height=\"516\" width=\"576\" data-animation=\"fade-in\" src=\"https:\/\/visuallease.com\/wp-content\/uploads\/2022\/10\/GASB87-diagram-alerts.png\" srcset=\"https:\/\/visuallease.com\/wp-content\/uploads\/2022\/10\/GASB87-diagram-alerts.png 576w, https:\/\/visuallease.com\/wp-content\/uploads\/2022\/10\/GASB87-diagram-alerts-300x269.png 300w\" sizes=\"100vw\" alt=\"GASB87 diagram alerts\" \/><\/div><\/div>[\/vc_column_inner][\/vc_row_inner]\t<div class=\"evc-button-wrapper evc-btn-center\">\n<a class=\"evc-button evc-shortcode  evc-btn-solid evc-btn-medium \" href=\"https:\/\/visuallease.com\/request-demo\/\" style=\"font-size: 16px;font-weight: 700;color: #ffffff;background-color: #f48418\" data-hover-color=\"#ffffff\" data-hover-background-color=\"#0065a3\">\n\t\t<span class=\"evc-btn-text\">Discover Visual Lease<\/span>\n<\/a>\n\t<\/div>\n[\/vc_column][\/vc_row][vc_row type=&#8221;in_container&#8221; 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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][\/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_column_text] GASB 87 Summary &nbsp; Issued by the Governmental Accounting Standard\u2019s Board&#8230;<\/p>\n","protected":false},"author":2,"featured_media":6629,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","footnotes":"","_links_to":"","_links_to_target":""},"categories":[170],"tags":[273,187,215,189],"company_size":[],"company_portfolio_size":[],"company_industry":[],"case_study_topic":[],"class_list":["post-7627","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-lease-accounting","tag-discount-rate","tag-gasb-87","tag-lease-accounting","tag-private-companies"],"acf":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/visuallease.com\/wp-json\/wp\/v2\/posts\/7627","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/visuallease.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/visuallease.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/visuallease.com\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/visuallease.com\/wp-json\/wp\/v2\/comments?post=7627"}],"version-history":[{"count":0,"href":"https:\/\/visuallease.com\/wp-json\/wp\/v2\/posts\/7627\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/visuallease.com\/wp-json\/wp\/v2\/media\/6629"}],"wp:attachment":[{"href":"https:\/\/visuallease.com\/wp-json\/wp\/v2\/media?parent=7627"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/visuallease.com\/wp-json\/wp\/v2\/categories?post=7627"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/visuallease.com\/wp-json\/wp\/v2\/tags?post=7627"},{"taxonomy":"company_size","embeddable":true,"href":"https:\/\/visuallease.com\/wp-json\/wp\/v2\/company_size?post=7627"},{"taxonomy":"company_portfolio_size","embeddable":true,"href":"https:\/\/visuallease.com\/wp-json\/wp\/v2\/company_portfolio_size?post=7627"},{"taxonomy":"company_industry","embeddable":true,"href":"https:\/\/visuallease.com\/wp-json\/wp\/v2\/company_industry?post=7627"},{"taxonomy":"case_study_topic","embeddable":true,"href":"https:\/\/visuallease.com\/wp-json\/wp\/v2\/case_study_topic?post=7627"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}