GASB 87 and 96 Resource Center

As GFOA members continues to seek resources related to GASB 87 and GASB 96, we've compiled the information below to help in the learning and implementation process.

About GASB 96, Subscription-Based Implementation Arrangements (SBITAs)

In May 2020, GASB issued Statement No. 96, Subscription-Based Information Technology Arrangements. GASB 96 is effective for fiscal years beginning after June 15, 2022, and all reporting periods thereafter. Like GASB 87, Leases, GASB 96 is required to be applied retroactively; preexisting SBITAs are required to be recognized and measured based on the facts and circumstances of SBITAs on the first day of the first fiscal year restated or reported in accordance with GASB 96. Accounting and financial reporting for SBITAs is very similar to lessee accounting and financial reporting for leases, except that certain implementation costs of SBITAs may be capitalized as part of the value of the SBITA asset.

SBITA Examples Assumptions

This PDF contains assumptions used in developing the examples of SBITA measurement and recognition.

SBITA Examples Tool

This Excel workbook contains the calculations necessary for accounting for SBITAs under two different set of assumptions.

About GASB 87, Leases

In June 2017, the Governmental Accounting Standards Board (GASB) issued Statement No. 87, Leases. GASB 87 became effective for fiscal years beginning after June 15, 2021, and all reporting periods thereafter. It is important to know that the standard was required to be applied retroactively; preexisting leases were required to be recognized and measured based on the facts and circumstances of the lease on the first day of the first fiscal year for which reporting is done in accordance with GASB 87, not inception of the lease. While the opening net position of governments that had only operating leases in effect upon implementation will generally not be affected (due to offsetting intangible lease assets and lease debt), the increase in reported debt for lessee governments may impact compliance with debt limits, covenants, and statutes. For governments that had capital leases in effect upon implementation, the accounting for the capital lease will need to be “unwound” and leases in accordance with GASB 87 recorded, which may result in the need to restate opening net position in the first year restated or reported in accordance with GASB 87.

GFOA Leases Tool

Download the tool below for an example of how governments can perform the basic calculations needed for applying the lease standard with existing technology and understand the data that is being produced.

Leases Implementation Example – Preexisting Lease Contract

Download the file below for examples of lease transactions and events based on Governmental Accounting Standards Board (GASB) Statement 87, Leases, as amended and expanded on by subsequent GASB pronouncements through August 2021.

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