LeaseCrunch, a cloud-based lease accounting software company, as added support for lessor accounting for GASB 87. This feature is available immediately for LeaseCrunch GASB (Governmental Accounting Standards Board) customers.
Previously, under GASB 62, lessors recognized revenue as payments were received. Under GASB 87, lessors must book the following entry upon commencement of the lease term when: lease receivable is the present value of lease receipts and deferred inflow of resources is the value of the Lease Receivable increased by prepayments received and reduced for incentives paid to lessee.
LeaseCrunch’s lessor accounting for GASB 87 includes the same simple five-step wizard to add a lease that users are accustomed to, which takes three or less minutes per lease. Users now select whether the lease will be accounted for as a lessee or lessor which drives the following differences in workflow: lessors enter receipts instead of payments as the lessee and GL Account selection for lessee or lessor.
To run the journal entries, amortization schedule and footnote, choose the lessor or lessee view to select leases for reporting, set the GL start and end date and then press export.
“After extensive interviews with CPA firms who serve government organizations, we’re happy to announce that we now offer lessor accounting for GASB 87,” said Ane Ohm, LeaseCrunch CEO and co-founder. “Lessor accounting for GASB 87 is built on the same easy-to-use platform that allows CPA firms, companies and government entities to address the biggest challenges in the new lease standard while automating the required deliverables.”
