Principal Amount in GASB Amortization Schedule
Learn why there is no principal amount in the first few years of your GASB Amortization Schedule
For a relatively long lease, there will be a significant amount of interest to recognize. Per GASB 87 paragraph 24, payments are applied to interest first and then the principal amount. This holds true for the maturity analysis calculations as well as the recognition of the interest portion through the list of the lease.