GASB 87 — Leases
Single lessee model- Issued by
- Governmental Accounting Standards Board (GASB)
- Jurisdiction
- US state & local government
- Effective
- Fiscal years beginning after June 15, 2021.
GASB 87 is the leasing standard for US state and local governments. Like IFRS 16 it uses a single model: a lessee recognises a lease liability and an intangible right-to-use lease asset, with interest and amortization recognised separately.
Read the standard at its source: Governmental Accounting Standards Board (GASB).
Measurement, classification & disclosure
Single model for governments
A lessee government recognises a lease liability measured at the present value of payments and a right-to-use lease asset, then recognises amortization of the asset and interest on the liability over the lease term.
Cite: GASB Statement No. 87
Apply GASB 87 to a real lease
Enter a lease in the free calculator with GASB 87 selected. Ledgerage applies the correct lessee model and returns the schedule, journal entries and disclosures — with a citation on every result.
GASB 87 questions, answered
Who has to apply GASB 87?
US state and local governments and other entities that follow GASB standards. Corporations use ASC 842; IFRS reporters use IFRS 16.
The other standards
ASC 842 is the US GAAP leasing standard. It requires a lessee to recognise a right-of-use (ROU) asset and a lease liability on the…
Read the guide →IFRS 16 is the international leasing standard. Unlike US GAAP it uses a single lessee accounting model: almost every lease is reco…
Read the guide →