Finance enterprise groups for GASB 87 leases

According to GASB 87, all leases are considered finance leases unless they meet certain exceptions and are reported on the balance sheet. A new right-of-use (ROU) asset and lease liability is listed separately on the balance sheet.

The Lease Accounting Method on the FEG is a default and can be changed at any time. The Lease Accounting Method on the Accounting Entity (defaults from the FEG) cannot be changed when a lease has been created for the Accounting Entity.