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Reporting Requirements for Annual Financial Reports of State Agencies and Universities

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Reporting Requirements for Annual Financial Reports of State Agencies and Universities

Notes & Samples

NOTE 8 – Leases/SBITAs
Lessors - Regulated Leases

According to GASB 87, paragraph 60, a lessor with one or more regulated leases, must disclose the following about its lease activities (which may be grouped for purposes of disclosure), other than short-term leases:

  • A general description of its leasing.
  • The extent to which capital assets are subject to preferential or exclusive use by counterparties under agreements, by major class of assets and by major counterparty.
  • The total amount of inflows of resources (for example, lease revenue, interest revenue, and any other lease-related inflows) recognized in the reporting period from these agreements.
  • The amount of inflows of resources recognized in the reporting period for variable payments not included in expected future minimum payments.
  • The existence, terms and conditions of options by the lessee to terminate the lease or abate payments if the lessor agency has issued debt for which the principal and interest payments are secured by the lease payments.
  • A schedule of expected future minimum payments under these agreements:
    • Payments for each of the first five years
    • Payments in five-year increments thereafter

Note: Agencies are required to submit changes in leases through the LNSS web application.