Summary of Interpretation No. 23

Leases of Certain Property Owned by a Governmental Unit or Authority—an interpretation of FASB Statement No. 13


This Interpretation clarifies that portion of paragraph 28 of FASB Statement No. 13, Accounting for Leases, stating that leases of certain property owned by a governmental unit or authority shall be classified as operating leases.

The Interpretation describes six conditions that must be met for a lease of government owned property to be automatically classified as an operating lease. If all of the six conditions are not met, the criteria for classifying leases under Statement No. 13 that are applicable to leases generally are also applicable to leases involving government owned property.