GASB Statement No. 104 (GASB 104) introduces new disclosure requirements for certain capital assets held by governmental entities including those held for sale.

Key Provisions of the Pronouncement

GASB 104 applies to all state and local governments and covers the presentation and disclosure of:

o    Lease assets recognized under GASB 87

o    Intangible right-of-use assets recognized under GASB 94

o    Subscription assets (SBITAs) recognized under GASB 96

o    Other intangible assets

o    Capital assets held for sale

New Disclosure Requirements

This pronouncement requires that the following types of assets be disclosed separately within the Governmental Activities and Business-Type Activities note disclosures for capital assets:

o    Lease assets should be added that presents the cost for the lease assets recognized under GASB 87 and GASB 94

o    A separate line in the note disclosure should present the subscription assets (SBITAs) recognized under GASB 96

o    A note disclosure should present the assets held for sale and should include the cost of the asset, the related accumulated depreciation, and the amount of debt outstanding for which the asset is pledged as collateral.

Effective Date

The statement is effective for reporting periods beginning after June 15, 2025 with earlier application encouraged.

How will the changes in this statement improve financial reporting

GASB 104 provides governments with uniform guidance for presentation and disclosure of leased assets, intangible right-of-use assets, SBITAs, and assets held for sale. Overall, the changes in this Statement are designed to provide a clearer picture of the government’s capital assets, which allows for better decision-making.  

If you need assistance preparing for your audit or have questions related to the implementation of this pronouncement, CFLG is here to help. Contact us at (305) 662-7272 or email us at info@cflgcpa.com