GASB 87 Checklist

GASB 87 Checklist is an important tool for organizations to use to properly assess and account for their leases. The checklist helps ensure compliance with the new leasing standards established by the Governmental Accounting Standards Board (GASB), which requires organizations to document, recognize, and report on all real estate leases they have entered into. By using the GASB 87 Checklist, organizations can accurately identify and assess their leases to properly comply with GASB standards.

Details for GASB 87 Checklist

1. Identify Leases

The GASB 87 Checklist helps organizations identify all leases they have entered into and are responsible for, including any subleases or assignments.

2. Assess Risks and Obligations

Organizations must assess the risks associated with their leases and understand what their obligations are to properly assess them and report on them accurately according to GASB standards.

3. Calculate Cash Flows

The checklist guides how to calculate cash flows related to a lease, such as payments due, estimated term of the lease, expected termination costs, etc., which can help organizations make informed decisions about their leasing arrangements.

4. Determine Initial Recognition

Organizations must determine the initial recognition of their leases and calculate the discounted present value to accurately report them by GASB standards.

5. Document Leases

The Checklist guides documentation such as lease agreements, amendment forms, notes to financial statements, etc., which need to be included for organizations to comply with GASB leasing requirements.

6. Update Records

Organizations must keep track of all new leases and document any changes to existing ones to properly comply with GASB standards.

7. Report Financial Information

The Checklist guides how to report leasing information such as lease payments, obligations, the present value of cash flows, etc., accurately according to GASB requirements.

8. Monitor Compliance

Organizations should regularly monitor their compliance with GASB leasing standards by using the Checklist and making sure that they are up-to-date on any new developments or regulations related to leasing.

FAQ for GASB 87 Checklist

1. What is the GASB 87 Checklist?

GASB 87 Checklist is a tool designed to help organizations assess and account for their leases according to the new leasing standards established by the Governmental Accounting Standards Board (GASB).

2. Why do I need GASB 87 Checklist?

The GASB 87 Checklist guides how organizations can properly document, recognize, and report their real estate leases to comply with GASB standards.

3. What does the GASB 87 Checklist include?

The checklist includes guidance on identifying leases, assessing risks and obligations, calculating cash flows, determining initial recognition of leases, documenting lease information, updating records, and reporting financial information according to GASB standards.

4. How often should I use the GASB 87 Checklist?

Organizations should use the checklist regularly to monitor their compliance with GASB leasing requirements. It is important to keep track of any new developments or regulations related to leasing to remain compliant.

5. Can I get help with understanding the GASB 87 Checklist?

Yes, there are many resources available to help organizations understand and use the GASB 87 Checklist. Many accounting firms offer guidance and assistance in navigating the checklist and ensuring that organizations are compliant with all relevant GASB standards.

In Summary

The GASB 87 Checklist provides organizations with important guidance on how to properly assess and report on their real estate leases. It is critical for any organization that is engaged in leasing activities to understand these requirements, as failure to do so can lead to non-compliance and potential penalties. By using the GASB 87 Checklist and seeking assistance from accounting professionals, organizations can ensure that their leasing activities are compliant and up-to-date with GASB standards.

ChecklistComplete

GASB 87 Checklist

Identify Leases

Assess Risks and Obligations

Calculate Cash Flows

Determine Initial Recognition

Document Leases

Update Records

Report Financial Information

Monitor Compliance