GASB 87: Lease Accounting Software

Lucernex

Find out how GASB 87 lease accounting software provides functionalities needed to maintain compliance with GASB No. 87 and other financial reporting standards.

June 8, 2022

4 min read

What is GASB 87?

GASB Statement No. 87, or GASB 87, is the latest lease accounting standard issues by the Government Accounting Standards Board (GASB) for governmental organizations. Though the current expected due date for GASB 87 adoption is June 15, 2021, GASB favors early adoption, so it’s important that your organization develops the policies, efforts and controls to facilitate adoption as soon as possible.

There is overlap between GASB 87 and other lease accounting standards like ASC 842 and IFRS 16. However, GASB more closely resembles IFRS 16. The standard specifically:

Requires that all leases be reported as a capital lease/financing lease.
Eliminates the classification of an operating lease unless the lease is a short-term lease, characterized as 12 months or less.
Provides for three accounting treatments: short-term leases, contracts that transfer ownership and contracts that do not transfer ownership.
Requires that a lessee recognizes a lease liability and an intangible right-to-use lease asset and that a lessor recognizes a lease receivable and a deferred inflow of resources.

Features of GASB 87 Compliant Software

Automatic Compliance with All Lease Accounting Standards

Lucernex is verified as a compliant solution by a leading independent 3rd party accounting firm for not only GASB 87 but also IFRS 16 and ASC 842 standards. This automatic compliance can mitigate audit-associated risks by helping your company achieve and maintain compliance over time.

Centralized Information and Useful Software Integrations

Using Lucernex’ REST API and flat file secure transfers, you can integrate your Lucernex lease accounting software with other mission-critical systems. This can allow for big-picture insight and make sure you have all the data you need to facilitate compliance. These integrations include:

CMMS or FM solutions
Accounting systems
CRMs
BI tools
Financial management systems
ERPs like Oracle and SAP
Human capital management systems

Ultra-Secure, IT-Approved Solution

Using Lucernex, you can automate and streamline many tasks and permissions to reduce human error and ensure data integrity. More specifically, you can:

Dictate levels of access to ensure sensitive information is never over-exposed
Minimize the risk of human error, data breaches or lost information
Implement strict data entry validation protocols
See full, real-time audit trails
Track modifications anywhere and in real-time

SOC 1 and SOC 2 Report Compliance

System and Organization Controls (SOC) reports are reports issued by third-party CPAs that help establish credibility of service providers based on five categories: security, availability, processing integrity, confidentiality and privacy.

There are three types of SOC reports, though SOC type 1 and SOC type 2 are most relevant for lease accounting software. Lucernex is compliant with both SOC 1 and SOC 2, so you can be sure you’re working with a trustworthy software.

Simplified Data Forecasting

When it comes to leases and maintaining compliance, it’s important to be able to effectively budget, forecast and allocate funds. Lucernex offers comprehensive reporting and analytics that make this forecasting a breeze, ultimately saving your organization money and maximizing your efficiency.

Automated Reports and Alerts

Easily use customized and canned reports about crucial GASB data. Create custom alerts to remind you of payment dates, renewals, audits and more.

Benefits of GASB 87 Lease Accounting Software

Streamline Compliance with GASB 87, IFRS 16 and ASC 842

With the wrong lease accounting compliance tool, your business can face concerns – like unforeseen costs, limited functionality and failed implementation – that can make it nearly impossible to maintain compliance with GASB 87, IFRS 16 and ASC 842.

Lucernex offers transparent pricing, scalable functionality, comprehensive integrations, audit logs and a 100% success rating getting clients into compliance.

Enhance Your Data Security

Cybersecurity is a real and growing concern, particularly when it comes to sensitive financial information. Lucernex can enhance your data security with:

Penetration testing
Encryption: AES-256, TLS 1.2
Dynamic application security testing
Authentication - SAML 2.0, JWT
Key management
Role-based access controls

Simplify Your Document Management Processes

When it comes to lease accounting and lease management, there’s a lot to juggle including your contracts, your portfolio of leases and related documentation. Using Lucernex GASB 87 software, you can centralize all this information and even create alerts when a document is ready for review or auditing, thereby streamlining your document management.

Reduce Costly Human Error

Human mistakes and oversights can lead to data errors or missed compliance deadlines and renewal dates. Use Lucernex GASB 87 software to miss such mistakes, thereby reducing costs and increasing efficiency over time.