GASB 87 will fundamentally change the way that both lessors and lessees recognize and disclose leases. Essentially, it narrows the existing definition of a lease and then goes on to adjust how leases are recorded in financial statements. Nearly every government, higher education, and healthcare organization has at least one contract, whether for buildings, land, vehicles, or equipment. But that contract may or may not qualify as a lease under GASB 87.
This workflow will guide you through the process of determining if your contract is considered a lease under GASB 87.
