Lease Accounting Software for GASB 87 Compliance

Ensure GASB Compliance using Visual Lease's Lease Accounting Software

Visual Lease for GASB 87 Compliance

Visual Lease’s lease accounting software accurately generates financial disclosure reports and supporting documentation, keeping you in compliance with applicable regulatory requirements including GASB 87.

What is GASB 87?

The Government Accounting Standards Board (GASB) released GASB Statement No. 87 in June 2017, significantly changing government entities’ accounting and financial reporting for leases.
The effective date for reporting periods will begin after December 15, 2019, although earlier application is encouraged within the statement by GASB. The standard requires all leases that meet the criteria to be accounted for as finance leases, therefore impacting balance sheets and income statements.

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Industries Affected by GASB 87

GASB 87 impacts governmental entities commonly within the following industries:

State, local or municipal governments
Hospitals / Healthcare (state/locally owned)
Housing authorities
Commercial entities (state/local funded)
Higher education (publicly funded)
Public utilities
Native American Tribes

What Does GASB 87 Mean For You?

GASB 87 Balance Sheet Changes
• All leases are now considered finance leases, unless they meet certain exceptions (i.e. short-term leases).
• Right-of-use (ROU) assets and lease liability are represented separately.
• Key financial metrics are influenced through new assets and liabilities.

GASB 87 Income Statement Changes
• Amortization expense for leased assets are reported within the operating costs section of the income statement.
• Interest expense for lease liabilities are reported within the finance costs section of the income statement.
• Lease expenses are adjusted as the amount of interest is reduced over the term of the contract.

Report Selector - GASB 87

GASB 87 Key Product Features

Visual Lease’s industry-leading lease accounting software automates financial reporting associated with your GASB compliance requirements.

  • Data Collection: Collect the key data points within your full lease portfolio in one system for easy tracking, audit capabilities and reporting.
  • GASB Reporting: Calculate reports within the system, including the GASB Disclosure Report, GASB Standard Report, Journal Entry Summary Report and other ad-hoc reports.
  • Financial Entries: Capture all payment or income streams relevant for each lease to populate lease accounting calculations and journal entries.
  • Streamlined Calculations: Easily generate lease accounting calculations, including transition, new leases (post-transition) and reassessments (modification, impairment, etc.).