States, Cities Get Accounting Guidance on Leases, Software

States, cities, and local governments got some extra guidance Monday on how to tackle certain lease accounting and subscription-based information technology accounting questions.

Issued in a question-and-answer format, the Governmental Accounting Standards Board’s guidance covers topics such as how to tell if a lease arrangement is short-term or long-term and whether a software contract includes a perpetual license. The guidance also includes a Q&A related to determining whether a particular financial move needs to be recorded as a financial reporting update or correction.

• The accounting standard-setter for state and local governments periodically issues new or updated guidance to help government ...