**Proposed Lease USSGL Accounts for SFFAS 54 & SFFAS 60 Implementation (To Be Effective Fiscal Year 2024)**

**LESSEE ACCOUNTS**

**Account Title:**Lessee Right-To-Use Lease Asset

**Account Number:**195000

**Normal Balance:**Debit

**Definition:**This account is used to record the lessee’s right to control the use of an underlying asset during the lease term in leases other than

short-term leases, lease contracts that transfer ownership, and intragovernmental leases. It is measured at the start of the lease term by adding the amount of the initial lease liability, any lease payments made to the lessor at or before the start of the lease term (less lease incentives,) and any indirect lease costs necessary to place the lease asset into service. This account does not close at year-end.

**Account Title:**Accumulated Amortization on Lessee Lease Assets

**Account Number:**195900

**Normal Balance:**Credit

**Definition:**This account is used to record the amount of accumulated amortization charged to expense for a lessee’s lease assets. This account does not close at year-end.

**Account Title:**Unfunded Accrued Interest Payable

**Account Number:**214010

**Normal Balance:**Credit

**Definition:**This account is used to record the amount of interest accrued and owed to others that is not otherwise identified, and will be funded by future years' budgetary resources. It is intended for use only with interest accrued on the discount of a right-to-use lease liability.  This account does not close at year-end.

**Account Title:**Lessee Lease Liability

**Account Number:**293000

**Normal Balance:**Credit

**Definition:**This account is used to record the present value of lease payments required to be paid to a lessor for the lease term in leases other than short-term leases, lease contracts that transfer ownership, and intragovernmental leases.  For certain payments not included in the measurement of the Lessee Lease Liability, see SFFAS 54, Par. 41. To record the lease liability for lease payments that will be funded by future years’ budgetary resources, use USSGL 293010 instead.  This account does not close at year-end.

**Account Title:**Unfunded Lessee Lease Liability

**Account Number:**293010

**Normal Balance:**Credit

**Definition:**This account is used to record the present value of lease payments required to be paid to a lessor for the lease term, that will be funded by future years' budgetary resources.  For certain payments not included in the measurement of the Lessee Lease Liability, see SFFAS 54, Par. 41. This account does not close at year-end.

**Account Title:**Lessee Lease Expense 

**Account Number:**693000

**Normal Balance:**Debit

**Definition:**This account is used to record the amount of expenses incurred from (1) Short-term lease payments paid by a lessee based on the provisions of the lease contract; (2) Intragovernmental lease receipts paid by a lessee, including lease-related operating costs (maintenance, utilities, taxes, etc.,) paid to a lessor based on the provisions of the lease agreement; and (3) Variable payments based on future performance of the lessee or usage of the underlying asset in leases other than short-term leases, lease contracts that transfer ownership, and intragovernmental leases.  For certain variable payments included in the lessee lease liability rather than expense, see SFFAS 54, Pars. 41.

**Account Title:**Lessee Lease Amortization 

**Account Number:**671300

**Normal Balance:**Debit

**Definition:**This account is used to record the expense recognized from the process of allocating costs of a lease asset over the shorter of the lease term or underlying asset's useful life.

**LESSOR ACCOUNTS**

**Account Title:**Lessor Lease Receivable

**Account Number:**193000

**Normal Balance:**Debit

**Definition:**This account is used to record the present value of lease payments required from a lessor for the lease term in leases other than

short-term leases, lease contracts that transfer ownership, and intragovernmental leases. For certain payments not included in the measurement of the Lessor Lease Receivable, see SFFAS 54, Pars. 57-58. This account does not close at year-end.

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**Account Title:**Allowance for Loss on Lease Receivable

**Account Number:**193900 

**Normal Balance:**Credit

**Definition:**This account is used to record the provision for uncollectible amounts of payments measured within the Lessor Lease Receivable. This account does not close at year-end. 

**Account Title:**Unearned Lessor Revenue

**Account Number:**233000

**Normal Balance:**Credit

**Definition:**This account is used to record the amount of lease revenue expected to be received during a lease term, but on which lessees will make payments over the life of the lease term for the right to use an underlying asset.  Lessors should record unearned revenue in leases other than short-term leases, lease contracts that transfer ownership, and intragovernmental leases only.  See also SFFAS 60, Par. 26.  This account does not close at year-end.

**Account Title:**Lessor Lease Revenue

**Account Number:**593000

**Normal Balance:**Credit

**Definition:**This account is used to record the amount of revenue earned from (1) Short-term lease payments paid to a lessor based on the provisions of the lease contract; (2) Intragovernmental lease receipts to a lessor, including lease-related operating costs (maintenance, utilities, taxes, etc.,) received from the lessee based on the provisions of the lease agreement; and (3) Variable payments based on future performance of the lessee or usage of the underlying asset in leases other than short-term leases, lease contracts that transfer ownership, and intragovernmental leases.  For certain variable payments included in lease receivable rather than revenue, see SFFAS 54, Pars. 57-58.

**Account Title:**Amortization of Unearned Lessor Revenue

**Account Number:**593300

**Normal Balance:**Credit

**Definition:**This account is used to record the amortized amount of a Lessor’s Unearned Revenue – reclassifying it to earned revenue - in leases other than short-term leases, lease contracts that transfer ownership, and intragovernmental leases.  See SFFAS 60, Par. 26

**Attribute Table (Effective Fiscal Year 2024)**

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**IRC Handout 11/30/2022**

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**IRC Handout 11/30/2022******