GASB 96 is a new accounting standard that applies to government organizations with subscriptions to IT software that meet specific requirements.
We’ve put together this list of resources to help you as you begin implementing GASB 96 within your organization.
You should evaluate whether you’ll need to implement GASB 96 if you work for:
Implementing GASB 96 will require the collection and analysis of data related to your subscription-based IT arrangements (SBITAs) and crafting relevant accounting schedules and journal entries.
Depending on the size and complexity of your organization, you may need to work with other departments (particularly IT) to gather all SBITAs. Proper planning and access to the right resources (which we’ll lay out below) will also be key for successful implementation.
Once GASB 96 has been fully implemented within your organization, you’ll need to maintain ongoing compliance.
You won’t want to leave implementation to the last minute. Locating relevant IT subscription contracts and extracting the necessary data can be time consuming. Waiting too long may put you at risk of missing the deadline to comply making it difficult to adequately prepare for audit.
Below are resources that can be helpful in understanding and implementing GASB 96.
Summary of Statement No. 96 - Subscription-based Information Technology Arrangements is a pronouncement created by the Governmental Accounting Standards Board (GASB) in May 2020.
It provides governments with guidance on accounting and financial reporting for SBITAs by defining what counts as a SBITA and how to correctly record one in your financial records.
Since this document was issued directly by the GASB, this should be your go-to resource when implementing GASB 96 within your organization.
If you’re working with someone struggling to decode the meaning and requirements of Summary of Statement No. 96, fear not. This is where resources #2–6 come into play. These resources help explain GASB 96 in more streamlined, easy-to-understand terms.
Before you start planning a large-scale implementation of GASB 96 within your organization, it’s important to review your IT subscription contracts and determine if they are considered SBITAs under GASB 96.
To help you determine whether your organization has SBITAs within the definition of GASB 96, we’ve created a basic decision tree you can download here.
Once you’ve used the decision tree above to determine if you have SBITAs that fall under GASB 96, you’ll need to take a more in-depth look at all the details and intricacies of GASB 96.
“GASB 96 Definitions, Guidelines, & Best Practices” is an article that DebtBook has created to help. It breaks down the information contained within GASB 96 into a more condensed and easy-to-understand form.
From this resource, you will learn:It also outlines some common challenges faced by organizations looking to implement GASB 96. With this knowledge, you’ll go into the implementation process with a better idea of what to expect.
Has your organization recently dealt with implementing GASB 87 related to governments’ financial reporting of leases? If so, then you know how much work and planning are required to implement one of these new standards.
Implementing GASB 96 will require a similar level of effort.
Your team must understand the risks of waiting until the last minute to implement GASB 96. For instance:
On the more positive side, you and your team should also be aware of all of the benefits that you’ll gain by preparing and implementing GASB 96 early. For instance:
Our article “Don't Wait to Implement GASB 96: Why Early Adopters Will Come Out Ahead” will help explain to your teams the importance of getting started as soon as possible.
We understand that implementing a new accounting standard can be intimidating. That’s why Kasey Harris, DebtBook’s Vice President of Accounting Product & Enablement, has put together the article “Planning and Preparing for GASB 96,” which breaks down the preparation process for GASB 96 into bite-sized steps.
You’ll learn the process all government organizations should go through to implement GASB 96 effectively. The article takes you through 8 steps of GASB 96 implementation:
You can also read our article titled “Building an Action Plan for GASB 96 Compliance.”
The “Project Costs: What They Are & How They're Relevant to GASB 96” article explains what project costs are and how they should be accounted for under GASB 96.
Activities associated with subscriptions need to be grouped into three stages and have their costs accounted for accordingly. The three stages are:
After reading through the list of resources above, hopefully you feel more comfortable with the GASB 96 implementation process and what it involves.
If the process still seems overwhelming, DebtBook can help. Our subscription management software has been developed specifically with local governments and their unique challenges in mind.
DebtBook can help significantly reduce the burden of complying with GASB 96 by assisting with upfront SBITA organization and data extraction, schedule creation, and ongoing compliance.
Schedule a demo to get a firsthand look at DebtBook and see what it can do for you.
Disclaimer: DebtBook does not provide professional services or advice. DebtBook has prepared these materials for general informational and educational purposes, which means we have not tailored the information to your specific circumstances. Please consult your professional advisors before taking action based on any information in these materials. Any use of this information is solely at your own risk.