GASB 87 Guidance

GASB 87 Memoranda

Memorandum 2021-05:  GASB Statement No. 87 Leases – Part 1

“GASB Statement No. 87 Leases – Part 1” was issued in December 2020 and focused primarily on various policy and planning aspects associated with the lease guidance provided by GASB Statement No. 87, Leases.

Memorandum 2021-09:  GASB Statement No. 87 Leases – Part 2

“GASB Statement No. 87 Leases – Part 2” was issued in June 2021 and builds on the information provided in Memorandum #2021-05. This new memorandum focuses on the implementation of GASB 87, both from a lessee and lessor perspective.  The memo also includes instructions on using the templates provided below.

Memorandum 2022-09:  GASB Statement No. 87 Leases – Part 3

“GASB Statement No. 87 Leases – Part 3” was issued in March 2022 and focuses on GASB 87 updates to the illustrative financial statements.

GASB 87 Excel Templates

To assist NC local governments with implementing GASB 87, LGC staff have developed some tools that will help local governments post various transactions in the general ledger. The tool assumes that all the up-front work of decisioning a contract or agreement have been completed, and you have identified the population of agreements that meet the definition of a lease in GASB 87.  With those decisions made, then local governments are ready to begin using these reporting tools. 

Two templates are provided below - one for lessees and one for lessors.  The template is intended to be used in a one-to-one relationship with each agreement.  That is, a local governmental unit with five lease agreements will need to download and complete five different workbooks, one for each of the agreements.  Together, all the agreements will provide the entries that are needed for the GASB 87 lease journal entries in the initial year of implementation.

 The templates are designed such that the user completes a questionnaire on the “Questionnaire” tab and payment schedules on the “Calculations” tab.  After completion, the templates provide suggested journal entries for year one of implementation.  The user and his or her auditor should review all entries provided by the templates and adjust them as needed to accommodate the specific circumstances of each of the lease agreements.  For example, the templates charge all variable and non-lease lease related payments for excess use or for insurance or repairs and maintenance to an expense or revenue account in the month of the payment – the user may deem it necessary to charge the payment to an asset or liability account and amortize over a period of time greater than one month. 

Please see details and instructions on the templates in Memo 2021-09.

Lessor Lease Worksheet

Lessee Lease Worksheet


Coming soon