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Reminder: GASB 87 - Lease Accounting

September 11, 2020

The Government Accounting Standards Board (GASB) is the source of generally accepted accounting principles used by state and local governments in the United States. Ohio University, as a public institution, reports its financial statements using GASB. GASB has recently required the implementation of Statement 87 – Lease Accounting which has required changes in the way the University accounts for lease expenses and lease revenues. As a result of this change the following new object codes have been implemented:

  • The following object codes should now be used for recording lease expenses.
    • 732110 – SHORT TERM RENTAL AND LEASE – EQUIPMENT AND VEHICLES
    • 732520 – SHORT TERM RENTAL AND LEASE – FACILITIES, LAND AND BUILDINGS
    • 732115 – LONG TERM RENTAL AND LEASE – EQUIPMENT AND VEHICLES
    • 732515 – LONG TERM RENTAL AND LEASE – FACILITIES, LAND AND BUILDINGS
  • The following object codes should now be used for recording lease revenues.
    • 470415 - SHORT TERM RENTAL LEASE BLDGS - COMMERCIAL
    • 470485 - SHORT TERM LAND LEASE INCOME
    • 470495 - SHORT TERM RENTAL LEASE CELL TOWER/ROOFTOP
    • 470510 - SHORT TERM EQUIPMENT RENTALS
    • 471415 - SHORT TERM RENTAL LEASE BLDGS - RESIDENTIAL
    • 470410 - LONG TERM RENTAL LEASE BLDGS - COMMERCIAL
    • 470480 - LONG TERM LAND LEASE INCOME
    • 470490 - LONG TERM RENTAL LEASE CELL TOWER/ROOFTOP
    • 470515 - LONG TERM EQUIPMENT RENTALS
    • 471422 - LONG TERM RENTAL LEASE BLDGS - RESIDENTIAL

The following definitions apply to the accounting of lease expenses and revenues:

  • A SHORT term lease is a lease that, at the commencement of the lease term, has a maximum possible term, including extensions, under the lease contract of 12 months or less.
  • A LONG term lease is a lease that, at the commencement of the lease term, has a maximum possible term, including extensions, under the lease contract of over 12 months.

Questions regarding accounts to use for charging leases, information needed when setting up new lease contracts, or modifications to existing contracts - please contact Finance@ohio.edu.