Who Needs to Comply with GASB 96?

Entities That Must Comply

If your organization prepares financial statements in accordance with GASB standards, you are required to implement GASB 96. This includes:

• State governments
• Local governments (cities, counties, towns)
• Public colleges and universities
  
• School districts
• Public hospitals and healthcare systems
  
• Special purpose governments (ex., utilities, transit agencies, housing authorities)

Even if your organization is small, you must still evaluate any software subscription arrangements to determine if GASB 96 applies.

GASB 96 ensures consistent and transparent financial reporting of long-term software subscriptions. Compliance is not optional for GASB-reporting entities. It helps stakeholders understand the full scope of a government's IT commitments and financial obligations.

What’s important here?

If your organization reports under GASB standards, you need to comply with GASB 96. That includes assessing all IT subscription arrangements, identifying SBITAs, and properly accounting for them to maintain compliance and ensure accurate financial reporting.