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.