SBITA Asset
Related terms
Category
GASB 87/96
A SBITA asset is an intangible right-to-use asset recognized under GASB 96 for subscription-based IT arrangements. It represents the government entity's right to use the vendor's IT software for the subscription term and is amortized over that period.
Why it matters
SBITA assets are measured at the subscription commencement date and include the initial subscription liability plus payments made before commencement, less incentives received. They are amortized on a straight-line basis over the shorter of the subscription term or the useful life of the underlying IT asset.
How Arvexi handles this
Arvexi calculates SBITA assets at subscription commencement and generates amortization schedules for the subscription term. The platform tracks SBITA assets separately from GASB 87 lease assets for proper disclosure and reporting.