GASB 87
Related terms
Category
GASB 87/96
GASB 87 (Leases) is the governmental lease accounting standard issued by the Governmental Accounting Standards Board, effective for fiscal years beginning after June 15, 2021. It requires government entities to recognize lease assets and lease liabilities for virtually all leases.
Why it matters
GASB 87 applies to all state and local governments, public universities, school districts, and other governmental entities. Unlike ASC 842, GASB 87 does not distinguish between operating and finance leases; all leases follow a single model from the lessee perspective. The standard also applies to lessors, requiring recognition of lease receivables and deferred inflows of resources.
Government entities face unique challenges: fiscal funding clauses, regulated lease rates, and complex intergovernmental arrangements. Many lease accounting platforms built for corporate use do not support GASB standards at all.
How Arvexi handles this
Arvexi fully supports GASB 87 alongside ASC 842 and IFRS 16. Government entities can manage their lease portfolios with the correct single-model treatment, including handling of fiscal funding clauses and regulated lease arrangements. GASB 87 and GASB 96 can run simultaneously on the same portfolio. See how Arvexi serves government agencies.