[ACFR-contacts-news] GASB 87, Leases, Implementation Update

[CHASE Stacey A * DAS]

Good afternoon ACFR contacts!

I'm pleased to announce that the new accounting profiles associated with GASB 87 are now available in R*STARS for use beginning July 1, 2021 (FY 2022). Special thanks to SFMS for all of their efforts to implement the R*STARS profile changes!

Please note: existing profiles that need to be modified (e.g. D10 Cobj 4800) to align with the new lease reporting standards will be made after Month 13 closes so as not to inadvertently impact FY 2021 financial reporting.

For a comprehensive list of the profile changes, please refer to the Accounting profiles-proposed file located at: https://www.oregon.gov/das/Financial/Acctng/Documents/GASB%2087%20Chart%20of%20Account%20Changes.03-12-2021.pdf.

Let the agency object code creation begin! Have fun!

In other news, below are a few housekeeping items related to GASB 87 implementation I wanted to highlight:


1.       During the year of GASB 87 implementation (FY 2022), agencies should consider the commencement date of each lease as July 1, 2021. For example, if the agency entered into a lease in 2005 and the lease expires May 31, 2022 (assuming there are no options to extend), the maximum lease term would be 11 months and thus the lease would qualify as a short-term lease during the year of implementation. [Refer to GASB 87 paragraphs 94, B124.]

a.       For those leases that expire after June 30, 2022, recognize and measure the leases using the facts and circumstances that exist as of July 1, 2021.



2.       If an agency concludes that the interest rate, or interest rate implicit in the lease, cannot be "readily determined" then the Statement allows the incremental borrowing rate to be used. [Refer to GASB 87 paragraphs 23, B40.] Agencies are responsible for documenting their conclusions for audit purposes.

a.       Understanding that the Statement goes into effect July 1, 2021, a statewide incremental borrowing rate is not yet available for use in measuring leases. SARS has been coordinating with Treasury to identify a mechanism for making that information available to agencies. An announcement will be made via the ACFR contacts news list once a process has been established.

Please let me know if you have any questions. Thank you!
s

Stacey A. Chase
Senior Financial Reporting & Policy Analyst
Chief Financial Office
Department of Administrative Services
Phone: (971) 900-9993
https://www.oregon.gov/das/financial/acctng/pages/index.aspx

Data Classification: Level 1 - Published


From: Acfr-contacts-news <acfr-contacts-news-bounces at omls.oregon.gov> On Behalf Of CHASE Stacey A * DAS via Acfr-contacts-news
Sent: Thursday, May 13, 2021 11:40 AM
To: acfr-contacts-news at omls.oregon.gov
Subject: [ACFR-contacts-news] GASB 87, Leases, Implementation Updates

Hello ACFR contacts!

How is GASB 87 implementation going? Great, right?! Below are a few implementation updates.

Secretary of State (SOS) Audits Division
SOS auditors started contacting agencies to discuss GASB 87 implementation efforts. Remember, documentation is essential. Whether a contract and/or agreement was determined by the agency to be subject to GASB 87 or excluded from GASB 87, be sure to document how the determination was made and retain the documentation for audit purposes. The auditors may ask to review this documentation.

Leases negotiated by DAS Real Estate Services (DAS-RES)
DAS-RES will provide a list of existing leases negotiated by DAS-RES on behalf of other state agencies. The list will include a minimum amount of information about each lease; the purpose of which is to alert agencies of current leases that will need to be evaluated and measured. DAS-RES is in the process of preparing the reports by agency for distribution no later than May 28. The lists will be distributed to the agency contact on file at DAS-RES. Please coordinate with your internal procurement or facilities office to obtain a copy of the list, as needed.

GASB 87 Resources
Be sure to visit the SARS training and resources webpage for information to assist with agency implementation efforts. Direct access to the webpage is available via the following link: https://www.oregon.gov/das/Financial/Acctng/Pages/Training.aspx.

[cid:image002.png at 01D76129.B50758F0][cid:image006.jpg at 01D76129.B50758F0]

Please let me know if you have any questions. Have a great day everyone!
S :)


Stacey A. Chase
Senior Financial Reporting & Policy Analyst
Chief Financial Office
Department of Administrative Services
Phone: (971) 900-9993
https://www.oregon.gov/das/financial/acctng/pages/index.aspx

-------------- next part --------------
An HTML attachment was scrubbed...
URL: <https://omls.oregon.gov/pipermail/acfr-contacts-news/attachments/20210614/ed392aa2/attachment-0001.html>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image001.png
Type: image/png
Size: 1833 bytes
Desc: image001.png
URL: <https://omls.oregon.gov/pipermail/acfr-contacts-news/attachments/20210614/ed392aa2/attachment-0002.png>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image002.png
Type: image/png
Size: 12132 bytes
Desc: image002.png
URL: <https://omls.oregon.gov/pipermail/acfr-contacts-news/attachments/20210614/ed392aa2/attachment-0003.png>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image006.jpg
Type: image/jpeg
Size: 76668 bytes
Desc: image006.jpg
URL: <https://omls.oregon.gov/pipermail/acfr-contacts-news/attachments/20210614/ed392aa2/attachment-0001.jpg>