Lessee Accounting for Governments, PSU's following GASB-87

Hi All,

I am Navin Gadidala, Product Manager working on IFRS16/ASC842/GASB 87.

I made few observations on GASB87 requirements and  the solution pointers for the same. It will be greatly appreciated if readers of this article critically evaluate this and provide their feedback.

a. There appears to be two methods of accounting. 'Accrual' and 'Modified Accrual'

b. Accrual appears very closer to IFRS16 and should be captured in a secondary ledger.

c. Primary ledger will need to capture encumbrance type of accounting with budgetary controls desirably.

d. In Primmary Ledger, Lease Liability will be treated as an 'Revenue' item and Right of Use as an Expense to be charged off immediately(ROU expense and Lease Liability Revenue are calculated in line with IFRS16 ROU and Liability).