By LeaseCrunch® on Nov 10, 2021 10:58:07 AM
The easy-to-use lease accounting platform enables lessees and lessors to comply with the required deliverables of GASB 87
LeaseCrunch, a cloud-based lease accounting software company, today announced support for lessor accounting for GASB 87. This feature is available immediately for LeaseCrunch GASB customers.
Previously, under GASB 62, lessors recognized revenue as payments were received. Under GASB 87, lessors must book the following entry upon commencement of the lease term when:
- Lease receivable is the present value of lease receipts; and
- Deferred inflow of resources is the value of the Lease Receivable increased by prepayments received and reduced for incentives paid to lessee
LeaseCrunch’s lessor accounting for GASB 87 includes the same simple 5 step wizard to add a lease that users are accustomed to, which takes three or less minutes per lease. Users now select whether the lease will be accounted for as a lessee or lessor which drives the following differences in workflow:
- Lessors enter receipts instead of payments as the lessee
- GL Account selection:
- Lessee: Lease asset, short and long term lease liability, interest payable, amortization expense, accumulated amortization and interest expense
- Lessor: Deferred inflow of resources, short and long term lease receivable, interest receivable, lease revenue and interest revenue
To run the journal entries, amortization schedule and footnote, choose the lessor or lessee view to select leases for reporting, set the GL start and end date and then press export.
“After extensive interviews with CPA firms who serve government organizations, we are happy to announce that we now offer lessor accounting for GASB 87,” said Ane Ohm, LeaseCrunch CEO and Co-Founder. “Lessor accounting for GASB 87 is built on the same easy-to-use platform that allows CPA firms, companies and government entities to address the biggest challenges in the new lease standard while automating the required deliverables.”