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<p class="MsoNormal">Good day.<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">As you may know, GASB Statement No. 87, <i>Leases</i>, amends the reporting and recognition standards associated with contracts that meet the definition of a lease. That being, a contract that conveys control of the right to use another
entity’s nonfinancial asset as specified in the contract for a period of time in an<o:p></o:p></p>
<p class="MsoNormal">exchange or exchange-like transaction.<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">To incorporate the new lease reporting and recognition standards into the OAM, the below policies have been updated. <o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">OAM 15.40.00 Expenditures – updates limited to formatting and the elimination of “operating lease” and “capital lease”.<o:p></o:p></p>
<p class="MsoNormal">OAM 15.60.10 Classification Capitalization<o:p></o:p></p>
<p class="MsoNormal">OAM 15.60.20 Depreciation<o:p></o:p></p>
<p class="MsoNormal">OAM 15.60.30 Leases (formerly titled <i>Capital Leases</i>)<o:p></o:p></p>
<p class="MsoNormal">OAM 15.60.40 Intangible Assets<o:p></o:p></p>
<p class="MsoNormal">OAM 15.80.00 Commitments - updates limited to formatting and the elimination of “operating lease” and “capital lease”.<o:p></o:p></p>
<p class="MsoNormal">OAM 15.97.00 Agency Financial Reporting - updates limited to formatting and the elimination of “operating lease” and “capital lease”.<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Each of the above policy updates are available on the <a href="https://www.oregon.gov/das/Financial/Acctng/Pages/OAM.aspx">
OAM website</a> and include a “clean” and “track changes” version.<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Please review the proposed edits to the above OAMs and provide comments to me by close of business
<b>Monday, September 13</b>. <o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Additional GASB 87 updates associated with OAM Chapters 60 and 65 will be forthcoming. Please let me know if you have any questions. Thank you.<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Happy reading!<o:p></o:p></p>
<p class="MsoNormal">S <span style="font-family:Wingdings">J</span><o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><b><span style="font-family:"Arial",sans-serif">Stacey A. Chase<o:p></o:p></span></b></p>
<p class="MsoNormal">Senior Financial Reporting & Policy Analyst<o:p></o:p></p>
<p class="MsoNormal">Chief Financial Office<o:p></o:p></p>
<p class="MsoNormal">Department of Administrative Services<o:p></o:p></p>
<p class="MsoNormal">Call via Teams or (971) 900-9993<o:p></o:p></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:#1F497D"><a href="https://www.oregon.gov/das/financial/acctng/pages/index.aspx"><span style="color:blue">https://www.oregon.gov/das/financial/acctng/pages/index.aspx</span></a><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial",sans-serif">Data Classification: Level 1 - Published</span><o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
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