GASB Proposes Guidance on Subscription-Based Technology

The GASB has issued an exposure draft (ED), Subscription-Based Information Technology Arrangements [SBITAs].

The ED proposes “(1) defining a SBITA; (2) establishing that a SBITA would result in a right-to-use subscription asset — an intangible asset — and a corresponding subscription liability; (3) providing the capitalization criteria for outlays other than subscription payments, including implementation costs of a SBITA; and (4) requiring note disclosures of essential information regarding a SBITA.”

Comments on the ED are due by August 23, 2019. For more information, see the press release and ED on the GASB’s Web site.