Are You Ready for GASB 96, 94, 100 and 101?

Are You Ready for GASB 96, 94, 100 and 101?

It’s a big year for new and updated GASB standards, which translates into new and updated reporting requirements for government entities, including public school districts and institutions of higher education.

GASB96 took effect for fiscal years beginning after June 15, 2022, so it will start to be reflected in financial statements with a June 30, 2023 year-end and all reporting periods thereafter. Similar to GASB 87 governing leases, GASB96 sets standards for how government entities – including school districts and higher education institutions – account for and disclose costs and investments for subscription-based information technology arrangements (SBITAs) that are longer than 12 months.

Similar to what is required for leases under GASB87, all SBITAs that may be covered under GASB96 must be identified; required information must be collected and documented, and various costs must be accounted for during the implementation and subscription periods. (For more details, see RBT CPAs’ article, GASB 96 Kicks Off in 2023: What to Know & Do.)

GASB 94 took effect for fiscal years beginning after June 15, 2022, so it will start to be reflected in financial statements with a June 30, 2023 year-end and all reporting periods thereafter. It applies to Public-Private and Public-Public Partnerships (PPP) and Availability Payment Arrangements. GASB94 defines PPP as an arrangement where a government (the transferor) contracts with an operator for public services by giving the right to operate or use a non-financial asset (i.e., infrastructure) for a period in an exchange or exchange-like transaction. The transferor can approve and change which services the operator provides, to whom and related prices. The transferor is also entitled to residual interest in the service utility of the PPP asset at the end of the arrangement.

GASB 100 amends GASB62. It is effective for accounting changes and error corrections made in fiscal years beginning after June 15, 2023. Accounting changes are defined as changes in accounting principles, estimates, and/or changes or within the financial reporting entity. Implementation of corrections/changes must be identified as prospective or retrospective and prior period financial statements must be restated, displaying the aggregate amount of adjustments to and restatements of beginning net position, fund balance, or fund net position. Financial reporting entity changes should be reported by adjusting current period beginning balances. Estimated changes should be recognized in the current period and reported prospectively. Financial statements should note the organization adopted GASB 100 provisions as well as the date of adoption; note disclosures detailing changes, errors, impacts on starting balances; and highlight why new methods are preferable.

GASB 101 (Compensated Absences) replaces GASB16 (Accounting for Compensated Absences) to reflect paid time off practices (including vacation and sick time) in a workplace. Enhancements to compensated absence recognition, measurement, and reporting requirements take effect fiscal years starting December 15, 2023.

That’s a lot of GASB to take in. For more details, see RBT CPAs’ article, What to Know About GASB Changes Taking Effect in 2023. Even better, if you need clarifications or answers to questions, please don’t hesitate to reach out to your RBT CPAs contact.