GASB 87 Lease Terms:
Are my leases in scope?
Experts: Emily Fish & Jason Parker, CPA
Questions answered in this episode:
- My lease renews annually, is it in scope under GASB 87?*
- My lease is evergreen, is it in scope?
- My lease is for 10 months but renews annually unless I give notice of not renewing at least 60 days before the end of the term. Is my lease a short-term lease/is my lease exempt from GASB 87?*
For questions 1 and 3, we are considering both the initial term and the renewal term to be non-cancellable. Keep that in mind as you take into consideration Jason’s responses in relation to your own lease portfolio.