With the postponements of effective dates of certain authoritative guidance by Governmental Accounting Standards Board (GASB) Statement No. 95, the effective dates of GASB Statement No. 87, Leases, and the related Implementation Guide No. 2019-3, Leases was postponed 18 months. The revised effective date of GASB Statement No. 87, Leases, is now scheduled for reporting periods beginning after June 15, 2021.
The implementation of this standard will cause the accounting by local governmental organizations for leases to change dramatically. Governments will also need to prepare for the implementation of this standard well in advance of the fiscal year-end reporting date.
Understanding the definitions of a lease and the nature of your lease contracts and how they meet that definition will also become very important...