How to enter a PPP in LeaseCrunch subject to GASB 94 as an Operator?
If you are a government entity that is an Operator in a PPP arrangement, add the PPP contract in LeaseCrunch in the identical manner as a Lessee would under GASB 87/96 with the following changes:
- GASB 94 Paragraph 39, 53: The PPP asset is a new asset purchased or constructed by the Operator and the PPP does not meet the definition of an SCA. When the underlying PPP asset is placed into service, at the Operator’s estimated carrying value at the expected date of the transfer of ownership, book a Deferred Outflow of Resources and Liability. Amortize the Deferred Outflow of Resources into Expense over the PPP Term.
- Book these entries outside of the LeaseCrunch software. The Expense should be added to the Footnote export from the LeaseCrunch software.
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