Gasb 96 Excel Template Download And Implementation Guide

What is GASB 96?

GASB 96 Template Download and Implementation Guide

The Governmental Accounting Standards Board (GASB) is responsible for setting accounting standards for state and local governments in the United States. GASB 96, which supersedes GASB 87, is a new standard that aims to improve the accounting and financial reporting for subscription-based information technology arrangements (SBITAs). GASB 96 is effective for fiscal years beginning after June 15, 2022, and early adoption is not permitted.

Why is GASB 96 Important?

GASB 96 is crucial because it provides guidance on how governments should account for SBITAs, which are becoming increasingly common. SBITAs are arrangements where a government receives access to a vendor's software, data, or other information technology resources for a specified period. The new standard ensures that governments accurately recognize and report the costs associated with these arrangements, promoting transparency and accountability in financial reporting.

Key Provisions of GASB 96

GASB 96 introduces several key provisions that governments need to consider:

Definition of SBITAs: The standard defines SBITAs as arrangements that provide the right to use software, data, or other information technology resources for a specified period.
Recognition and Measurement: Governments should recognize SBITAs as assets and liabilities on their balance sheets. The standard also provides guidance on how to measure the costs associated with SBITAs.
Amortization: Governments should amortize the costs of SBITAs over the term of the arrangement.
Disclosure Requirements: Governments are required to disclose information about their SBITAs, including the nature of the arrangement, the term, and the costs associated with it.

Excel Template for GASB 96 Implementation

To help governments implement GASB 96, we have created an Excel template that can be downloaded and used as a guide. The template includes the following features:

SBITA Tracking: A worksheet to track SBITAs, including the arrangement details, term, and costs.
Amortization Schedule: A worksheet to calculate the amortization of SBITA costs over the term of the arrangement.
Financial Statement Disclosures: A worksheet to help governments prepare the required disclosures for their financial statements.

Implementing GASB 96: A Step-by-Step Guide

Implementing GASB 96 requires a thorough understanding of the standard and its requirements. Here is a step-by-step guide to help governments implement GASB 96:

Identify SBITAs: Review your government's contracts and agreements to identify SBITAs that meet the definition in GASB 96.
Determine the Term: Determine the term of each SBITA, including the start and end dates.
Calculate the Costs: Calculate the costs associated with each SBITA, including the upfront fees, recurring fees, and any other costs.
Amortize the Costs: Amortize the costs of each SBITA over the term of the arrangement using the Excel template.
Prepare Financial Statement Disclosures: Prepare the required disclosures for your financial statements using the Excel template.

Benefits of Implementing GASB 96

Implementing GASB 96 provides several benefits to governments, including:

Improved Transparency: GASB 96 promotes transparency in financial reporting by requiring governments to disclose information about their SBITAs.
Accurate Financial Reporting: The standard ensures that governments accurately recognize and report the costs associated with SBITAs, promoting accountability in financial reporting.
Better Decision-Making: By providing a clear understanding of the costs associated with SBITAs, governments can make better decisions about their information technology investments.

Challenges and Considerations

Implementing GASB 96 can be challenging, and governments should consider the following:

Complexity of SBITAs: SBITAs can be complex and may require specialized knowledge to understand and implement.
System Changes: Implementing GASB 96 may require changes to your government's financial systems and processes.
Training and Education: Governments may need to provide training and education to their staff to ensure that they understand the requirements of GASB 96.

Conclusion

GASB 96 is an important standard that aims to improve the accounting and financial reporting for subscription-based information technology arrangements. Implementing GASB 96 requires a thorough understanding of the standard and its requirements. By using the Excel template and following the step-by-step guide, governments can ensure a smooth implementation of GASB 96. Remember to share your thoughts and experiences in the comments section below.