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GASB proposes guidance on lease contracts

  • GASB document Image

Feb 09, 2016

The GASB has issued an exposure draft (ED), “Leases,” that would “establish a single approach for state and local governments to report leases based on the principle that leases are financings of the right to use an underlying asset.”

The proposal would require lessees “to recognize a lease liability and an intangible asset representing [their] right to use the leased asset,” while lessors “would be required to recognize a lease receivable and a deferred inflow of resources.” In addition, the ED provides guidance on the accounting for lease terminations and modifications, sale-leaseback transactions, nonlease components embedded in lease contracts, and related-party leases.

Com­ments on the ED are due by May 31, 2016. For more in­for­ma­tion, see the press release, ED, and GASB in Focus newsletter on the GASB’s Web site.

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