GASB issued a proposal to establish a single approach for state and local governments to report leases based on the principle that leases are financings of the right to use an underlying asset. The purpose of this proposed Statement would be to provide guidance for lease contracts for nonfinancial assets, excluding grants, donated assets, and leases of intangible assets. This should result in greater transparency and usefulness for financial statement users and reduced complexity in application for state and local government preparers and auditors.