LeaseCrunch Now Supports Lessor Accounting for GASB 87

LeaseCrunch, a cloud-based lease accounting software company, has announced support for lessor accounting for GASB 87. This feature is now available for LeaseCrunch GASB customers.

Previously, under GASB 62, lessors recognized revenue as payments were received. Under GASB 87, lessors must book the following entry upon commencement of the lease term:

• ​Lease receivable is the present value of lease receipts
• ​Deferred inflow of resources is the value of the Lease Receivable increased by prepayments received and reduced for incentives paid to lessee

LeaseCrunch’s lessor accounting for GASB 87 includes a simple 5-step wizard to add a lease, typically taking three or fewer minutes per lease. Users can now select whether the lease will be accounted for as a lessee or lessor, which affects the workflow as follows:

• ​Lessors enter receipts instead of payments (as lessees do)
• ​GL Account selection:
  • ​Lessee: Lease asset, short and long term lease liability, interest payable, amortization expense, accumulated amortization, and interest expense
  • ​Lessor: Deferred inflow of resources, short and long term lease receivable, interest receivable, lease revenue, and interest revenue

To run the journal entries, amortization schedule, and footnote, users choose the lessor or lessee view to select leases for reporting, set the GL start and end date, and then export the data.

Ane Ohm, LeaseCrunch CEO and Co-Founder, stated: “After extensive interviews with CPA firms who serve government organizations, we are happy to announce that we now offer lessor accounting for GASB 87. Lessor accounting for GASB 87 is built on the same easy-to-use platform that allows CPA firms, companies, and government entities to address the biggest challenges in the new lease standard while automating the required deliverables.”