May 20, 2020 - Planon announced that The University of Texas System has selected Planon’s Lease Accounting solution to adhere to the GASB 87 lease accounting standard for public organizations in the United States.
The software solution will support the UT System, which is one of the largest systems of higher education in the nation with 14 institutions, student enrollment of almost 240,000 and an annual operating budget of $21.1 billion.
The UT System was in search of a common platform with the ability to calculate the amounts required by the new accounting standards and to integrate with its ERP. The UT System examined several vendors and solutions for GASB 87 to find a dependable long-term partner.
In 2019, new lease accounting standards were adopted, altering the way that leases are recognized, measured and reported. The main change is that lease payments are no longer recognized as expenses, but assets and corresponding liabilities are calculated and reported on the balance sheet (except for low-value assets or lease terms of 12 months or less) using the single accounting model. GASB 87 has removed the distinction between finance and operating leases for lessees.
“The UT System is committed to maximizing efficiencies at its eight academic universities and six health institutions,” said Fred Guelen, President of North American Operations at Planon. “Planon is proud to support the UT System with our GASB 87 lease accounting solution.”