2022-06-08 CC Packet - Laserfiche WebLink

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Future Accounting Standard Changes The following Governmental Accounting Standards Board (GASB) Statements have been issued and may have an impact (1) on future City financial statements: GASB Statement No. 87 -Leases Summary The objective of this Statement is to better meet the information needs of financial statement users by improving financial statements by requiring recognition of certain lease assets and liabilitiesfor leases that previously were classified as operating leases and recognized as inflows of resources or outflows of resources based on the payment provisions of the contract. It establishes a single model for lease accounting based on the foundational principle that leases are financings of the right to use an underlying asset. Under this Statement, a lessee is required to recognize a lease liability and an intangible right-to-use lease asset, and a lessor is required to recognize a lease receivable and a activities. Effective Date and Transition The requirements of this Statement are effective for fiscal years beginning after June 15,2021, and all reporting periods thereafter. Leases should be recognized and measured using the facts and circumstances that exist at the beginning of the period of implementation (or, if applied to earlier periods, the beginning of the earliest period restated). However, lessors should not restate the assets underlying their existing sales-type or direct financing leases. Any residual assets for those leases become the carrying values of the underlying assets. How the Changes in This Statement Will Improve Accounting and Financial Reporting liabilities that currently are not reported. It will enhance comparability of financial statements among governments by requiring lessees and lessors to report leases under a single model. This Statement also will enhance the decision- usefulness of the information provided to financial statement users by requiring notes to financial statements related to 6