Transition new GASB leases to GASB 87 standard by configuring classification settings, calculating lease classification, generating accounting schedules, and activating after review.
About this task
As GASB is a new standard in
Maximo® Real Estate and
Facilities, all GASB leases must
be created with a new accounting standard only, that is GASB 87. There is no Lease treatment to
maintain the old standard information as it is done for the GAAP/IFRS standard. For GASB 96
Subscription Based IT Arrangement (SBITA), there is no Standard Adoption process. Follow these steps
to do an Accounting Review for a new GASB lease and transition it to GASB 87.
Procedure
- Go to and set the following:
- Set Is the lease being newly adopted to GASB 87? to TRUE.
- Set Is the lease Operating or Capital under the old standard? to either
Operating or Capital.
-
If the lease is Capital in the old standard, set the Carrying Value of Lease Asset and Lease
Liability. If the lease is Operating, set the Initial Liability Carryover Balance with any deferred
rent payments if there are any.
- For GASB 87 Lessor Lease: If the lease is Capital in old standard, set the Carrying
Value Of Deferred Inflow of Resources and Carrying Value of Lease
Receivable. If the lease is Operating, set the Initial Asset Carryover Balance (IACB)
and it is subtracted form Current Deferred Inflow of Resources Value.
- Click Calculate Lease Classification.
The
Adoption Date is updated with GASB adoption Period and the modification effective date is updated
with GASB Lookback period from the Application Settings.
- Click Generate Accounting Schedules.
- After the lease is back to Revision Accounting In Review, a lease accountant must review
the accounting schedules and if everything is good, click Activate.
Note: For GASB 96 Subscription Based IT Arrangement (SBITA), there is no Standard Adoption
process.