[CAFR-Contacts-News] Implementation of GASB 87, Leases

[CHASE Stacey A * DAS]

Good afternoon CAFR contacts!

As you may recall, last Spring GASB issued Statement No. 95 which postponed the effective dates for certain authoritative guidance. Specifically,  Statement No. 87, Leases<https://gasb.org/jsp/GASB/Document_C/DocumentPage?cid=1176169170145&acceptedDisclaimer=true>, was postponed by one year which resulted in a revised effective date of 7/1/2021 (fiscal year 2022).

In preparation for GASB 87 implementation, agencies should focus on identifying which contracts and/or agreements meet the definition of a "lease" under GASB 87 and collect the applicable data elements referenced in the GASB 87 Lease Data Matrix available on the SARS training and resources webpage<https://www.oregon.gov/das/Financial/Acctng/Pages/Training.aspx>.

Please note: this is more than just identifying "known leases" (e.g. facilities, copier); rather, agencies will need to evaluate their contracts and/or agreements to determine if they 1) meet the definition of a "lease" or 2) contain a "lease component" embedded in the contract and/or agreement. Please engage with your agency's Procurement and/or Facilities team to determine which contracts and/or agreements are subject to GASB 87 reporting.

Attached is a timeline developed to assist agencies in coordinating GASB 87 implementation. We recommend agencies use this tool as a baseline to develop agency-specific implementation plans. We also recommend agencies review GASB Implementation Guide No. 2019-3, Leases<https://www.gasb.org/jsp/GASB/Document_C/DocumentPage?cid=1176173189687&acceptedDisclaimer=true>, for additional information.

An overview of GASB 87 was provided during the 2019 SARS Year-end Close Training; the recorded training and slide deck are available on the SARS training and resources webpage<https://www.oregon.gov/das/Financial/Acctng/Pages/Training.aspx>. Additional training will be provided to agencies in late Spring (date TBD).

SARS is currently working with SFMS to update the chart of accounts in R*STARS and to establish new transaction codes. The new accounts and transaction codes are intended to be available in R*STARS by 7/1/21.

Implementing this statement may be a heavy lift for agencies...don't delay, start today! :)
s

Stacey A. Chase
Senior Financial Reporting & Policy Analyst
Chief Financial Office
Department of Administrative Services
Phone: (971) 900-9993
https://www.oregon.gov/das/financial/acctng/pages/index.aspx

Data Classification: Level 1 - Published

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