The acquisition of long-lived assets under an operating lease does not require any recognition in the accounts of any governmental fund.

Question

Quizplus · Accepted Answer

While it is true that there is no need to record an acquisition of an asset or a liability under an operating lease (particularly in a governmental fund, since those funds never report a long-lived asset), scheduled rental payments will be recorded as expenditures and use of cash in the appropriate governmental fund.

The Acquisition of Long-Lived Assets Under an Operating Lease Does