ACFR FY 2023 Final - Flipbook - Page 122
FINANCIAL SECTION
City of Eustis, Florida
NOTES TO FINANCIAL STATEMENTS
Note 15 - Subscription-Based Information Technology Arrangements (SBITA) (Continued)
Subscription terms should be reassessed only if one or more of the following occur:
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Government or SbITA vendors elect to exercise an option even though previously determined
that it was reasonably certain they would not exercise that optionÿ
Government or SbITA vendors elect not to exercise an option even though it was previously
determined that it was reasonably certain they would exercise that optionÿ
Event specioed in the SBITA contract that requires an extension or termination takes place.
2. SBITA Modiocations - A SBITA amendment resulting in a modiocation should be accounted for
as a separate SbITA if it adds one or more underlying IT assets that were not included in the original
SbITA contract; and the increase in subscription payments for the additional subscription asset does
not appear to be unreasonableÿ
3. SBITA Terminations - A SbITA amendment resulting in a decrease of the government9s right to
use the underlying IT assets is considered to be a full or partial terminationÿ A government should
reduce the carrying values of the subscription liability and related assets, and recognize a gain or
loss for the differenceÿ
4. Contracts with Multiple Components - If a SbITA contract contains multiple components, such
as a subscription component (right to use the underlying IT assets) and a nonsubscription component
(maintenance services for the IT assets), the government should account for the subscription and
nonsubscription components as separate contracts and allocate the contract price to the different
componentsÿ If it is not practicable to determine the best estimate for price allocation for some or
all components in the contract, they should be accounted for as a single SbITA unitÿ
5. Contract Combinations 3 Contracts onalized at or near the same time with the same SBITA vendor
should be considered part of the same contract if either of the following criteria is met:
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The contracts are negotiated as a package with a single objectiveÿ
The amount of consideration to be paid in one contract depends on the price or performance of
the other contractÿ
GASB 96 provides guidance on the accounting and onancial reporting for subscription-based information technology arrangements (SbITAs)ÿ The City should carefully consider the nature of its SbITA
arrangements and properly classify and report them in the onancial statements.
The following table presents the SbITA cost, depreciation, liability and debt service as of September
30, 2023ÿ
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Annual Comprehensive Financial Report | September 30, 2023
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