GASB provides guidance for certain capital assets

GASB issued guidance that establishes requirements for certain types of capital assets to be disclosed separately for purposes of note disclosures.

Statement No. 104, Disclosure of Certain Capital Assets, also establishes requirements for capital assets held for sale and requires additional disclosures for those capital assets.

There are four types of assets that will be disclosed separately:

1. Lease assets reported under Statement 87, Leases, by major class of underlying asset;
2. Intangible right-to-use assets recognized by an operator under Statement 94, Public-Private and Public-Public Partnerships and Availability Payment Arrangements, by major class of underlying asset;
3. Subscription assets reported under Statement 96, Subscription-Based Information Technology Arrangements; and
4. Intangible assets other than those listed in the first three items, by major class of asset.

Statement 104 establishes requirements for capital assets that are held for sale. A capital asset is a capital asset held for sale if (1) the government has decided to pursue the sale of the asset and (2) it is probable the sale will be finalized within a year of the financial statement date. A government should disclose the historical cost and accumulated depreciation of capital assets held for sale, by major class of asset.

The requirements of Statement 104 are effective for fiscal years beginning after June 15, 2025, and all reporting periods thereafter. Earlier application of the statement is encouraged.

— To comment on this article or to suggest an idea for another article, contact Kevin Brewer at Kevin.Brewer@aicpa-cima.com.