GASB 96 - SBITA
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      GASB 96 - SBITA Exclusions

      • There is no such thing as Lessor accounting for GASB 96 (If you believe you are a lessor, it's likely that you'll follow revenue recognition)
      • Timing: Some contracts are excluded from GASB 96 due to timing. Examples are as follows:  
        • Perpetual Contracts (no period mentioned)
        • Month-to-month or year-to-year
        • Include a cancellation clause a month or two into the subscription
      • Cancellable terms - when both the government and the SBITA vendor can terminate without permissions are excluded from the SBITA term
      • Cloud-based storage may not always be an SBITA.
        • In this case, it’s important to pay attention to the control part of the SBITA definition.
      • When the IT software component is insignificant when compared to the costs of the tangible capital asset
      • Tangible assets (likely accounted for under GASB 87)