Impending delay of GASB 87

The Government Accounting Standards Board has announced that they are putting on their agenda a proposal to postpone "all Statement and Implementation Guide provisions with an effective date that begins on or after reporting periods beginning after June 15, 2018." This would include GASB 87, the new lease accounting standard, as well as other standards. The reason is the upheaval caused by Covid-19. An Exposure Draft is be presented at the Board's April meeting, with plans to finalize the decision at the May meeting. In other words, the decision has effectively been made, but simply has to go through the formal process.

While this takes the pressure off governments, we recommend that they still keep moving forward on their implementation process for GASB 87, most importantly including identifying all leases. EZLease provides complete lease accounting both for the current FAS 13 methodology and for GASB 87, with full support for transition between the two standards.