GASB Proposes Single Approach for Lease Reporting
The Governmental Accounting Standards Board (“GASB”) has issued a proposal that would create a single model for state and local governments to report leases on their financial statements. The approach would be based on the notion that leases are financings of the right to use an underlying asset. Exceptions like short-term leases and financed purchases are given in the draft guidance, but the proposed Statement would cover lease contracts for nonfinancial assets such as vehicles, heavy equipment and buildings. Grants, donated assets and leases of intangible assets, however, would be excluded from the guidance. Per the Exposure Draft, Leases , a lessee government. Read More.