Goals of GASB 96
The standard was designed to:
- Enhance comparability – Ensure governments report subscription arrangements in a consistent way across jurisdictions.
- Increase transparency – Place subscription assets and liabilities directly on the face of financial statements, providing a more complete picture of financial obligations.
- Strengthen accountability – Ensure leaders and auditors can see the true scale of long-term technology commitments.
- Align with GASB 87 – Follow the model established for leases by requiring recognition of both an asset (the right-to-use IT resource) and a liability (the subscription payments owed).
Broader Context
Technology is now central to government operations, from financial systems to learning platforms and permitting software. When the Board issued GASB 96, they recognized that subscription-based IT is as critical as other long-term commitments like leases and debt.
Standardizing reporting ensures these arrangements are managed with the same level of scrutiny.
What’s important here?
The standard improves consistency, transparency, and accountability by requiring governments to recognize both the assets and liabilities of their subscription commitments.