In today's world of lease accounting, having the right tools to manage and comply with regulations is essential. One of the most critical regulations is GASB 87, which requires governments to report all leases, including those previously considered operating leases, on their balance sheet. This change can be overwhelming, especially for those who are not familiar with the requirements. That's where a GASB 87 Excel template comes in handy.
Benefits of Using a GASB 87 Excel Template
Using a GASB 87 Excel template can simplify the process of implementing the new lease accounting standard. Here are a few benefits of using such a template:
- Reduces errors: A template can help reduce errors that may occur when manually tracking and calculating lease data.
- Saves time: By automating calculations and formatting, a template can save time and effort that would be spent on manual data entry and calculation.
- Improves compliance: A template can ensure that all required data is collected and reported, reducing the risk of non-compliance.
- Enhances visibility: A template can provide a clear and concise view of lease data, making it easier to analyze and make informed decisions.
5 Essential Features of a GASB 87 Excel Template
Not all GASB 87 Excel templates are created equal. Here are 5 essential features to look for in a template:
1. Lease Data Tracking
A good GASB 87 Excel template should be able to track all lease data, including:
- Lease term
- Lease payments
- Lease commencement date
- Lease expiration date
- Lease classification (finance or operating)
Lease Data Tracking Example
| Lease ID | Lease Term | Lease Payments | Lease Commencement Date | Lease Expiration Date | Lease Classification |
|---|---|---|---|---|---|
| 1 | 5 years | $10,000 | 1/1/2022 | 12/31/2026 | Finance |
| 2 | 3 years | $5,000 | 6/1/2022 | 5/31/2025 | Operating |
2. Lease Classification
A GASB 87 Excel template should be able to classify leases as either finance or operating leases based on the lease data.
Lease Classification Example
| Lease ID | Lease Classification |
|---|---|
| 1 | Finance |
| 2 | Operating |
3. Lease Payment Scheduling
A good GASB 87 Excel template should be able to schedule lease payments over the lease term.
Lease Payment Scheduling Example
| Lease ID | Lease Payment Date | Lease Payment Amount |
|---|---|---|
| 1 | 1/1/2022 | $10,000 |
| 1 | 1/1/2023 | $10,000 |
| 1 | 1/1/2024 | $10,000 |
| 1 | 1/1/2025 | $10,000 |
| 1 | 1/1/2026 | $10,000 |
4. ROU Asset and Lease Liability Calculation
A GASB 87 Excel template should be able to calculate the Right-of-Use (ROU) asset and lease liability.
ROU Asset and Lease Liability Calculation Example
| Lease ID | ROU Asset | Lease Liability |
|---|---|---|
| 1 | $50,000 | $50,000 |
5. Compliance Reporting
A good GASB 87 Excel template should be able to generate compliance reports, including:
- Balance sheet
- Income statement
- Footnotes
Compliance Reporting Example
| Balance Sheet | Income Statement | Footnotes |
|---|---|---|
| ROU Asset | Lease Expense | Lease term |
| Lease Liability | Lease payments |
In conclusion, a good GASB 87 Excel template should have the above-mentioned features to help governments comply with the new lease accounting standard. By using such a template, governments can reduce errors, save time, improve compliance, and enhance visibility into their lease data.