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With December 15th approaching, the implementation deadline is looming large. We provide trusted guidance and solutions so governments can comply on time.
Lease accounting’s hidden challenges and opportunities
GASB 87 provisions go into effect for reporting periods beginning after December 15, 2019 and preparing for implementation can be daunting and time-intensive.
The steps needed to be taken in order to comply are more complex than most realize. Understanding and compiling the total lease population under the modified definition is extremely difficult. It’s a complex exercise that requires time and patience. In addition, the process needs to be thorough so that future leases remain in compliance.
Beyond the accounting and financial reporting changes, the new lease accounting standard will impact:
- How a government’s business is conducted
- The functionality of systems and processes and whether or not they need to be modified to meet and sustain the requirements going forward
- Governance’s structures and communication protocols, supporting a strong project management office.
The impact of the standard goes beyond the accounting department, likely impacting legal, procurement, real estate, asset management, treasury, budgeting, contract management and IT departments.
How KPMG can help
KPMG assisted the first wave of adopters through lease accounting change. Therefore, we bring lessons learned, our government practice that focuses on GASB and our specialized lease accounting group to specifically address the needs of our government clients.
We provide the right balance of solutions and compliance, leveraging the KPMG Leasing Tool to help ensure that leasing processes and policies are both effective and efficient. Our team is able to quickly assess where you are, where you need to be, and how to close the gap.
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The KPMG Leasing Tool
The KPMG Leasing Tool is a preconfigured SaaS that is simple and fast to implement. It’s designed to help governments adopt and assist in long-term compliance of the lease accounting standard, focusing on these key areas:
- Lease inventory completeness and data capture
- Financial reporting and disclosures accuracy
- Effective project management of your long-term lease accounting program
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