GASB Transition
Related terms
Category
GASB 87/96
GASB transition refers to the process of adopting GASB 87 (leases) and GASB 96 (SBITAs) from previous government lease accounting standards. GASB 87 became effective for reporting periods beginning after June 15, 2021. The transition required governments to recognize lease liabilities and right-to-use assets for all existing leases retroactively.
Why it matters
GASB transition was particularly challenging for government entities because many had never capitalized operating leases. Large public universities and municipalities discovered hundreds of previously off-balance-sheet leases. fleet vehicles, copier contracts, building leases, and land use agreements. The retroactive measurement required calculating what the lease liability and asset would have been at commencement, then amortizing forward to the transition date.
How Arvexi handles this
Arvexi automates GASB transition calculations for government entities still completing adoption or correcting prior-period errors. The platform calculates the as-if-always-applied amounts, generates the restated opening balances, and produces transition disclosures. For entities with large portfolios, this eliminates months of manual spreadsheet work.