Key Dates to Include in GASB 96 Disclosures
When reporting a SBITA, the following dates must be captured and disclosed in your financial statements:
1. Start of Subscription Term
This is the date the organization gains control of the right to use the software, typically when the system is implemented and ready for use. Recognition of the subscription asset and liability begins on this date.
2. End of Subscription Term
The final date of the non-cancellable portion of the agreement, including any renewal periods that are reasonably certain to be exercised.
3. Contract Execution Date
The date the agreement is signed. This is not necessarily the date when recognition begins, but it’s helpful to retain for record keeping and context.
4. Implementation Period Start and End
If the contract includes an implementation phase, the start and end dates of this period should be documented. Costs during this phase are treated differently and typically expensed, not capitalized.
5. Payment Schedule Dates
Disclose the timing of future payments–annually, monthly, or according to the contract. These dates support the required future payment disclosure schedule.
Why These Dates Matter
- Recognition Accuracy: Establishes when to start recording subscription assets and liabilities.
- Compliance: GASB 96 requires clear disclosure of terms to ensure transparency and comparability.
- Budgeting and Forecasting: Knowing start and end dates helps finance teams plan for recurring software costs and renewal decisions.
- Audit Readiness: Auditors will expect clear documentation of these dates to verify compliance with GASB 96.
What's Important Here?
GASB 96 disclosures must include key dates like the start and end of the subscription term, the implementation period, and the payment schedule. These dates drive accurate recognition, reporting, and compliance. For government and nonprofit finance teams, capturing these details ensures transparency, supports audit readiness, and helps manage IT subscription commitments over time.
