GASB 87 Initial Application Date

How Do I Know the Initial Application Date of GASB 87?

Below is authoritative guidance regarding GASB 87 adoption. 

GASB 95: Paragraphs 4, 4c,5 & GASB 87: Paragraph 93:

4. The requirements of the following Statements and Implementation Guides are effective as indicated:
c. Statement 87 and Implementation Guide 2019-3---fiscal years beginning after June 15, 2021.

5. Earlier application of the provisions in paragraph 4 is encouraged and is permitted to the extent specified in each pronouncement as originally issued.

93. Changes adopted to conform to the provisions of this Statement should be applied retroactively by restating financial statements, if practicable, for all prior periods presented. If restatement for prior periods is not practicable, the cumulative effect, if any, of applying this Statement should be reported as a restatement of beginning net position (or fund balance or fund net position, as applicable) for the earliest period restated.

Initial Application Date in LeaseCrunch

In the Administration tab, each Reporting Entity is associated with the initial application date of GASB 87.  In consideration of the guidance above, select the initial application date according to the earliest date of re-statement.

• The Initial Application Date is not the start date of your earliest lease.
• The Initial Application Date under GASB 87 is generally not earlier than 2020 unless you present more than 2 years in your financial statements.