The GASB has issued an Exposure Draft entitled Additional Proposal Implementation Guidance Update – 2023. The GASB periodically issues implementation guidance to assist practitioners in implementing GASB Statements and to answer frequently asked questions, which was published in October 2022. However, the GASB has elected to issue an additional proposed update to the implementation guide for 2023 containing one additional question to be added to the guide.

The addition relates to GASB Statement No. 96, Subscription-Based Information Technology Arrangements. The GASB is proposing a clarification that cloud computing arrangements, including software as a service, platform as a service, and infrastructure as a service fall within the Statement’s definition of a subscription-based information technology arrangement, provided that the arrangement conveys control of the right to use the underlying information technology assets in accordance with paragraph 7 of the Statement.

The guidance in this clarification would be effective for fiscal years beginning after June 15, 2023, although earlier application is encouraged. GASB Statement No. 96 is effective for fiscal years beginning after June 15, 2022, so implementing this guidance at the same time GASB Statement No. 96 is implemented would be ideal.

The full text of the Exposure Draft is available here.

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