Project Pages

Implementation Guidance—Leases

Project Description: The objective of this project is to publish question-and-answer guidance to assist state and local governments and other stakeholders in addressing implementation issues associated with Statements No. 87, Leases.

Added to Current Agenda: December 2017

Implementation Guide for Leases—PROJECT PLAN

Background: Specific issues were raised by respondents to the Exposure Draft, Leases, which were identified as candidates for consideration in an Implementation Guide. The staff is beginning to receive questions about the standards during speaking engagements, and technical inquiries are being submitted by stakeholders. The project staff anticipates a sustained high volume of questions once governments begin planning for their implementation of Statement 87.

In addition, the project staff has been monitoring implementation issues that the FASB is addressing relative to their recent leases guidance. The issues the FASB is addressing may have implications for implementation of Statement 87 to the extent that the leases standards are similar.

Accounting and Financial Reporting Issues: This project addresses issues related to the key aspects of Statement 87. Potential topics include but are not limited to:
  1. Scope of the standards and application of the definition of a lease
  2. Identifying the term of a lease
  3. Short-term leases
  4. Lessee recognition, measurement, and disclosure
  5. Lessor recognition, measurement, and disclosure
  6. Lease incentives
  7. Leases with multiple components
  8. Lease modifications and terminations
  9. Subleases
  10. Sale and leaseback and lease and leaseback transactions
  11. Intra-entity leases
  12. Leases between related parties 
Guidance would be limited to clarifying, explaining, or elaborating on the standards contained in Statement 87.

Project History:
  • Added to current technical agenda: December 2017
  • Task force established? Yes
Current Developments: The project staff continues to identify issues and develop potential implementation guide questions and answers for the Board’s consideration. A consultative group was appointed to aid the project staff in identifying and developing questions. At its July 2018 meeting, the Governmental Accounting Standards Advisory Council (GASAC) provided further feedback on potential issues that the GASAC members believe should be considered for inclusion in the Implementation Guide.

Work Plan:

Board Meetings

Topics to Be Considered

September–November 2018: Continue to develop materials for guidance related to requirements in Statement 87; obtain feedback from consultative group
December 2018: Review draft questions and answers.
January 2019: Review preballot draft of an Exposure Draft of a proposed Statement 87 Implementation Guide.
March 2019: Review ballot draft of an Exposure Draft of a proposed Statement 87 Implementation Guide and consider for clearance
April–May 2019: Comment period
June 2019: Redeliberate issues based on respondent feedback and
review preballot draft of a final Statement 87
Implementation Guide
June 2019 (T/C): Review ballot draft of a final Statement 87 Implementation
Guide and consider for clearance