Incorporate Statement of Federal Financial Accounting Standards 54 (SFFAS 54) standards in TRIRIGA

Statement of Federal Financial Accounting Standards (SFFAS) 54, Leases, is a standard that was issued in April 2018 to revise financial reporting standards for federal lease accounting. The standard aims to improve accountability and reporting of federal agencies' property, plant, and equipment liabilities and costs. It will be effective for periods beginning after September 30, 2023, for federal agencies that consider leases to be material. 

SFFAS 54 requires that federal lessees and lessors recognize certain assets and liabilities at the start of a lease term, unless the lease meets certain criteria: 

• Lessees: Recognize a lease liability and a right-to-use lease asset 
• Lessors: Recognize a lease receivable and unearned revenues 

SFFAS 54 also requires that all lease transactions be recognized in accordance with the standard for financial reporting purposes. This includes proper accounting and reporting for lease assets, liabilities, receivables, expenses, revenue, and other amounts. 

The standard defines a lease as a contract where one entity gives another entity the right to control the use of an asset for a specified period of time in exchange for consideration. To determine if a contract conveys the right to control, the lessee must have the right to obtain economic benefits or services from the asset, and the right to control access to those benefits. 

Numerous US federal agencies use TRIRIGA for lease accounting so it is imperative and urgent that the SFFAS 54 standards are incorporated in TRIRIGA at the earliest.