There are two new GASB standards which have the potential to impact financial reporting for local governments. Both standards are effective for fiscal years beginning after June 15, 2022, and all reporting periods thereafter - financial statements with June 30, 2023, year-ends will be first to implement.
GASB 96, Subscription-Based Information Technology Arrangements (SBITAs), describes financial reporting for a government with a contract to use another party’s information technology (IT) software. Click here for more details.
GASB 94, Public-Private and Public-Public Partnerships (P3s) and Availability Payment Arrangements (APAs), describes financial reporting for a contract between a governmental and another entity to provide public services by conveying control of the right to operate or use a nonfinancial asset, such as infrastructure or other capital asset, for a period of time in an exchange or exchange-like transaction. Click here for more details.
We Can Assist with Implementation
Avoiding surprises is critical with all new accounting pronouncements. Given the potential number of contracts to analyze and the time and effort necessary to compile information, it is important to begin the process of evaluation of the impact early in the reporting cycle.
This material has been prepared for general, informational purposes only and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. Should you require any such advice, please contact us directly. The information contained herein does not create, and your review or use of the information does not constitute, an accountant-client relationship.