Lease Receivable
Related terms
Category
GASB 87/96
A lease receivable is the present value of future lease payments expected to be received by a lessor during the lease term. Under GASB 87, lessors recognize a lease receivable and a corresponding deferred inflow of resources at lease commencement.
Why it matters
For government lessors (entities that lease assets to others), the lease receivable represents the economic benefits expected from the lease. It is reduced as payments are received and interest is accreted. This is a significant change from pre-GASB 87 practice where lease revenue was simply recognized as received.
How Arvexi handles this
Arvexi calculates lease receivables for lessor arrangements under GASB 87, generating the appropriate journal entries for initial recognition, interest accretion, and payment receipt throughout the lease term.