GASB 96 - SBITA Exclusions

There are no lessors accounting under GASB 96 (if you believe you are a lessor under GASB 96, it's likely you'd follow standard revenue recognition principles).
Some contracts are excluded from GASB 96 due to timing. Examples include:
- Perpetual Contracts (no period mentioned)
- Month-to-month or year-to-year
- Leases with a cancellation clause a month or two into the subscription
Cancelable 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 capital assets are likely accounted for under GASB 87.

Review the following factors and other considerations for leases under GASB 96