The Governmental Accounting Standards Board (GASB) has detailed new guidance that establishes a single approach to accounting for and reporting leases by state and local governments. The goal is to better align reporting these leases with their particular situations, as well as provide greater transparency and usefulness of financial statements.
Statement No. 87, released on June 28, provides guidance for lease contracts for assets like vehicles, buildings and heavy equipment. (It does not apply to donated assets and leases of intangibles like patents and software licenses.) Specific guidelines are given for governments in both lessee and lessor roles, as well as specific aspects of the arrangement to report.
You can see the entire statement here.
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