The 5 major challenges with GASB 96

Now is the time to plan for the next significant governmental accounting standard, GASB 96 for subscription-based IT arrangements (SBITAs).

While the accounting treatments for GASB 87 and GASB 96 have some helpful similarities, GASB 96 is more complex. We discussed five challenges with GASB 96:

1. Identifying SBITAs
2. Determining the nature of the arrangement
3. Identifying, segregating and valuating implementation costs
4. Disclosure requirements
5. Expensing versus capitalizing new charges