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Wayne County adopts GASB 96 SBITA policy, sets $50,000 capitalization threshold
Summary
The board adopted Resolution No. 27-02 implementing GASB Statement No. 96 for Subscription Based Information Technology Agreements and set a $50,000 right-to-use capitalization threshold for county reporting.
The Wayne County Board of Supervisors adopted Resolution No. 27-02 to implement GASB Statement No. 96 on Subscription Based Information Technology Agreements (SBITA). The policy instructs departments to recognize intangible subscription assets when a contract conveys control of the right to use software or related IT assets for more than twelve months and clarifies which agreements are excluded.
The resolution establishes that "All right-to-use subscription assets at or above $50,000 must be reported." It also outlines measurement and amortization rules—measurement at the present value of expected payments and straight-line amortization over the shorter of the SBITA term or the useful life of the underlying asset.
