Effective for fiscal year 2022, the Governmental Accounting Standards Board (GASB) Statement No. 87, Leases, establishes a single model for lease accounting based on the principle that leases are financings of the right to use an asset. There is no longer an operating vs capital classification. Lessees will recognize a lease liability and an intangible right-to-use asset, and lessors will recognize a lease receivable and a deferred inflow of resources.

GASB 87 applies to leases of capital assets—including buildings, land, and equipment and leases where the agency is the lessee or the lessor. In addition, GASB has issued Statement No. 96, which will expand the requirements to subscription-based information technology arrangements beginning in fiscal year 2023.

Facilities Portfolio Management Tool

Beginning in October 2021, agencies must record all leases within the scope of GASB 87 that exceed the capitalization threshold ($500,000 in total lease payments over the lease term) in the Facilities Portfolio Management Tool (FPMT).  In addition, agencies must record all state-owned and leased facilities in FPMT regardless of whether they meet the capitalization policy, to comply with RCW 43.82.150.

For more information on the implementation project, the timeline, and how to prepare for the changes review the following:

• Overview and Steps to Prepare
• Q&A on Implementing GASB 87
• Leases Agency Contacts – Accounting and Facilities
• Lease Data Matrix showing the accounting and FPMT data entry requirements for leases.

Training

Click on an e-Learning course below to launch the training. For the best experience, please do not use Internet Explorer.

• Leases Accounting & Administrative Policies - SAAM policies effective 7/1/2021 (90 minutes)
• Facilities Portfolio Management Tool (FPMT) Training is on the system page

Resources

OFM guides and resources

• GASB_87 Decision Tree for Lessees 
• GASB_87 Decision Tree for Lessors 
• Lease Accounting Decision Tree (PDF)
• GASB 87 Scope
• Lease Payments Classification Chart

GASB literature and resources

• GASB Statement No. 87, Leases
• GASB Implementation Guide No. 2019-3, Leases
• GASB Statement No. 96, Subscription-Based Information Technology Arrangements

Questions

If you have questions or comments, please contact Anna Quichocho at anna.quichocho@ofm.wa.gov or 360-725-0187.