GASB 96 Summary, Overview and Effective Date

August 19, 2020

What Is GASB 96?

The wave of accounting regulation continues. In June, the GASB announced Statement 96, or SBITA, a new standard that will apply to “subscription-based information technology arrangements”. 

In short, IT subscription agreements will convert to a “Right of Use Subscription Asset” with a corresponding liability.

Sound familiar?

It’s based on GASB 87, the new accounting standards for leases. Under GASB 87, entities will be required to read their lease contracts, extract critical data, and convert the data into a liability.

GASB 96 Effective Date

GASB 96 will go into effect for fiscal years starting after June 15, 2022. Early adoption is encouraged.


How To Use AI To Comply


We at smrt believe there is a much bigger discussion to be had about whether a subscription agreement is truly an “asset”. But we are not standard-setters. We are innovators, and are supportive of the goal of providing more financial visibility into organizations.

In the spirit of innovation, we support GASB 87 and GASB 96 for our Controllers and Audit Leaders - all in a single workflow.

We use the same AI-powered workflow for Leases, which helps extract key terms, such as Dates, Financials and embedded data points. 

The proliferation of SaaS arrangements will make GASB 96 a significant undertaking for organizations. The financial impact will not be as material as Leases, but the volume of software agreements that qualify may surprise you.

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