Implementing GASB 96

Navigating subscription-based information technology arrangements (SBITAs)

John Manilla, Brandon Reed, Violet Urdiales, Sadir Zarook

As more public sector organizations use the cloud for their IT needs, subscription-based software agreements have increased. GASB 96 responds to these changes by providing guidance on the accounting and financial reporting for subscription-based information technology arrangements (SBITAs).

GASB 96, which applies to all state and local government entities, drastically changes the way organizations account for SBITA contracts. As a result, organizations should start updating their processes as soon as possible. Like the recent leasing standard, GASB 87, the new guidance requires significant effort to implement the standard and to maintain it going forward.

Our team can help you:

  • Understand how GASB 96 defines SBITAs
  • Determine what IT arrangements are not applicable to GASB 96
  • Identify similarities and differences between GASB 96 and GASB 87
  • Plan the recommended steps needed to implement GASB 96

We also encourage you to read our article “6 Things Public Sector Teams Should Know About GASB 96.”


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