What is GASB 87?

US state and local governments, along with various municipal entities, can now use Occupier to meet the GASB87 standard.

GASB 87 became effective for all government-funded organizations on July 1, 2021.  This includes a diverse range of organizations, such as public benefit corporations and authorities, public employee retirement systems, public utilities, telecommunications companies, hospitals and healthcare providers, as well as colleges and universities. 

GASB 87 closely resembles ASC 842 and IFRS 16, as it mandates these organizations to recognize leased assets on their balance sheets through Right-of-Use Assets. The key distinction between GASB 87 and ASC 842 is that GASB 87 encompasses all leases, treating them as finance leases, similar to IFRS 16. This means that the calculations for GASB 87 align with those used for ASC 842 finance leases and IFRS 16 leases.