Topic Area: Governmental accounting standards.

Objective: To develop your knowledge of the new GASB standard on lease accounting.-

Required

1. What was the purpose of this new standard and what types of organizations would be affected by it? What prompted GASB to address this issue (Note: Background information can be found in Appendix A)?

2. What factors did the Board consider significant when reaching the conclusions in this Statement (See Appendix B)?

3. How is the Statement 87 lease accounting different from the previous accounting treatment of leases?

4. Do you agree with the changes in lease accounting? Why or why not?