How to Determine if You Have a Subscription Under GASB 96

GASB 96 changes the way that subscription-based IT arrangements, or SBITAs, are reported on the face of financial statements, requiring governments to record both subscription assets and liabilities for SBITAs.

With technology being a critical component of business operations for local governments, higher education institutions, and healthcare organizations, it’s very likely your organization has more than one SBITA. Common subscriptions include things like your ERP system, learning platform, tax collection software, budget software, and online conferencing tools to name a few.

But does that subscription qualify as a SBITA under GASB 96? This workflow will guide you through the process of determining if you have a GASB 96 subscription.