GASB 87 – Leases
GASB 87 Reporting
Governmental Accounting Standards require all leases, either with the State as the lessee or the lessor, to be recorded as capital assets in the Annual Comprehensive Financial Report. Additionally, a liability must be recorded for the market value of the remaining lease payments. This is required by the GASB to better meet the information needs of financial statement users by improving accounting and financial reporting for leases by governments.
If your any agency either pays for or receives rental payments for a lease agreement, it must be reported to the SAO Accounting Division annually by July 15th. However, please do not report leases where your agency reimburses The Department of Administration and Information (A&I). A&I will report these leases. This ensures the SAO is working with a complete listing of all State leases when recording the entries relevant to GASB 87.
State as Lessee: Leased assets to be reported include any item not owned by the State and for which an agreement, for longer than one year, exists that transfers the right to use the property, plant and equipment (this includes vehicles) to the State. This only relates to those leases where the State agency is the lessee and a non-State agency is the lessor. Leases between two state agencies (e.g., one agency being A&I and Motor Pool) do not need to be reported. For equipment leases, reporting is only required for each piece of equipment meeting the fixed asset threshold value of $5,000 or more. This threshold does not apply to other leases.
For the State as a Lessee leases, complete the applicable “GASB 87-Leases Template” included below and return it to the SAO Accounting Division. In completing the workbook, please be thorough. If the information is not known, please contact the lessor. The information submitted will be audited and must be accurate.
State as Lessor: If your agency is a lessor for any leases, please contact SAO Accounting Division for further instruction.
No Leases: If you do not have any reportable leases, enter “N/A” for GASB 87 Leases on the “N/A Survey” by July 15th.
Thank you for your assistance in the production of the State’s Annual Comprehensive Financial Report. Should you have any questions, please contact the SAO Accounting Division at (307) 777-2460 or saoaccounting@wyo.gov.