GASB 96 Compliance
GASB 96 Overview
GASB 96 is a set of accounting standards defining SBITAs (Subscription-Based Information Technology Arrangements) for government end users. It governs the accounting and financial disclosure of cloud-based software subscription payments. The standard applies to the senate, local governments, and government agencies using Generally Accepted Accounting Principles (GAAP).
What does it mean for my business?
Under GASB 96 (and as a governmental organization) you have to report SBITAs information in your financial statements for categorization and disclosure purposes. This includes any subscription assets, resource outflows, payments, principal/interest obligations, and losses.
What is GASB 96 compliance?
For GASB 96 compliance, finance and audit teams must account for subscription liabilities and subscription assets, or face the risk of non-compliance. It’s therefore important to have software that automates the process of recording this information in your financial statements.