The Federal Accounting Standards Advisory Board (FASAB) has issued Technical Bulletin 2023-1, Intragovernmental Leasehold Reimbursable Work Agreements, intended to further explain and address accounting issues not directly covered under Statement of Federal Financial Accounting Standards 54, Leases, and other relevant statements.
Under such work agreements, one reporting entity (the provider-lessor) acquires, constructs, improves and/or alters an underlying asset that is or will be leased to another reporting entity (the customer-lessee), and the customer-lessee agrees to reimburse the provider-lessor for direct and indirect costs for the acquisition, construction, improvement, and/or alteration. Learn more.