GASB 96 - Stages of Implementation
This article covers how to account for expenses and other costs related to the implementation of a subscription
Preliminary Project Stage
Includes conceptual formulation and evaluation of options, determination of the existence of needed technology, and final selection. (Expensed as incurred)
Example: Cost of a consultant to help with determining which software is right for your organization.
Initial Implementation Stage
Ancillary charges related to the configuration, coding, testing, and installation of the selected subscription asset. This stage is completed when the asset is placed into service. (Capitalized as part of the Subscription Asset)
Example: Costs of migrating data into the software.
To add this into Crunchafi Lease Accounting at transition to GASB 96, enter it as an Existing Balance under the Lease Payments tab of the add lease flow.
To add this into Crunchafi Lease Accounting after transition to GASB 96, enter it as an Initial Direct Cost on the Lease Payments tab.
Operation & Additional Implementation Stage
This stage includes maintenance, troubleshooting, and other activities associated with the government's ongoing access to the IT assets. (Expensed as incurred)
This stage also includes increasing functionality or efficiency of the Subscription Asset. (Capitalized as part of the Subscription Asset)
NOTE
Training costs are always expensed as incurred.