Accounting for GASB 87 and GASB 96
GASB 87 and GASB 96 are similar, yet different. Both share the characteristic of further complicating accounting in the name of financial clarity....
GASB 96: SBITAs - Quick Tips Series
The GASB 96 Quick Tips Series by LeaseCrunch, featuring Jess Vento from LeaseCrunch and Danny Martinez from Cherry Bekaert, is a three-part video series designed to help organizations understand and implement the Governmental Accounting Standards Board's Statement No. 96 (GASB 96) on Subscription-Based Information Technology Arrangements (SBITAs). Below is a consolidated summary of each part:
Part 1: Introduction to SBITAs
This segment introduces the concept of SBITAs, explaining their definition and significance under GASB 96. The presenters discuss the criteria that qualify an arrangement as a SBITA and emphasize the importance of recognizing and reporting these arrangements accurately in financial statements.
Part 2: Implementation Steps
In part 2, the focus is on practical steps for implementing GASB 96. The discussion includes strategies for organizing internal processes, identifying existing SBITAs within an organization, and determining the appropriate subscription term for each arrangement. The presenters highlight the necessity of thorough documentation and cross-departmental collaboration to ensure compliance.Part 3: Common Pitfalls and Considerations
The final segment addresses common challenges and potential pitfalls that organizations may encounter during the implementation of GASB 96. The presenters provide insights into areas that require careful attention, such as accurately assessing variable payments, understanding the impact of contract modifications, and ensuring proper disclosure of SBITAs in financial reports.GASB Resources
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