502.1 Accounting for Leases - University as Lessor

PSU may enter into an operating lease as the lessor when leasing an asset to an outside entity If your department is contemplating such a transaction, please contact Contracting and Procurements Services. 

OPERATING LEASE ACCOUNTING REQUIREMENTS: No entries are made in Banner FIS at the inception of the operating lease. Accounting transactions in Banner FIS are limited to recording the periodic revenue of the operating lease. If maintenance or other costs are billed to the lessee, they should be accounted for in the proper income account codes. PSU is required to maintain a record of all operating leases to provide information for the notes to the annual financial statements.

FINANCIAL REPORTING REQUIREMENTS: In the notes to the annual financial statements, PSU is required by GAAP to disclose operating lease receivables. 

PSU is also required to provide certain information relating to land, property or equipment that is leased out. The information should include type of asset being leased, capitalized cost of the leased asset, accumulated depreciation on the leased asset and a description of the leasing arrangement.