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GASB 96 - SBITA Exclusions

There is no such thing as Lessor accounting for GASB 96 (If you believe you are a lessor, it's likely that you'll follow revenue recognition)
Timing: Some contracts are excluded from GASB 96 due to timing. Examples are as follows:
- Perpetual Contracts (no period mentioned)
- Month-to-month or year-to-year
- Include a cancellation clause a month or two into the subscription
Cancellable terms - when both the government and the SBITA vendor can terminate without permissions are excluded from the SBITA term
Cloud-based storage may not always be an SBITA.
- In this case, it’s important to pay attention to the control part of the SBITA definition.
When the IT software component is insignificant when compared to the costs of the tangible capital asset
Tangible assets (likely accounted for under GASB 87)