GASB 96
GASB 96 (Subscription-Based Information Technology Arrangements) is a governmental accounting standard that establishes accounting and financial reporting requirements for SBITAs. cloud computing, SaaS, and other IT subscription arrangements used by government entities.
Why it matters
GASB 96 extends balance-sheet recognition to IT subscription arrangements, which were previously expensed as incurred. Government entities must now recognize SBITA assets and liabilities, similar to how GASB 87 treats leases. This affects budgeting, financial reporting, and IT procurement decisions.
The standard is particularly impactful for government entities with large cloud computing portfolios. SaaS applications, cloud infrastructure, and subscription-based IT services. Each arrangement must be evaluated, measured, and reported under the new framework.
How Arvexi handles this
Arvexi supports GASB 96 natively alongside GASB 87. The platform recognizes SBITA assets and liabilities, generates amortization schedules, and produces the required journal entries and disclosures. Government entities can manage both traditional leases (GASB 87) and IT subscriptions (GASB 96) in a single platform.