The GASB has issued GASB Statement No. 104, Disclosure of Certain Capital Assets. Statement No. 104 requires certain types of capital assets to be separately disclosed in a government’s capital asset footnote disclosures.

Over the past several years, various other GASB Statements have resulted in new capital assets being reported within a government’s financial statements. These include lease assets recognized in accordance with Statement No. 87, Leases; intangible right-to-use assets recognized in accordance with Statement No. 94, Public-Private and Public-Public Partnerships and Availability Payment Arrangements; and subscription assets recognized in accordance with Statement No. 96, Subscription-Based Information Technology Arrangements.

Statement No. 104 requires that each of these types of capital assets be separately disclosed within the capital asset footnotes. Lease assets pursuant to Statement No. 87 and intangible right-to-use assets pursuant to Statement No. 94 should be separately disclosed by major class of underlying asset. In addition, Statement No. 104 requires intangible assets other than these three types to be disclosed separately by major class.

Statement No. 104 also requires additional disclosures for capital assets held for sale. A capital asset is a capital asset held for sale if (a) the government has decided to pursue the sale of the capital asset and (b) it is probable that the sale will be finalized within one year of the financial statement date. Governments should consider relevant factors to evaluate the likelihood of the capital asset being sold within the established time frame. Statement No. 104 requires that capital assets held for sale be evaluated each reporting period. Governments should disclose (1) the ending balance of capital assets held for sale, with separate disclosure for historical cost and accumulated depreciation by major class of asset, and (2) the carrying amount of debt for which the capital assets held for sale are pledged as collateral for each major class of asset.

The requirements of Statement No. 104 are effective for fiscal years beginning after June 15, 2025, and all reporting periods thereafter. Earlier application is encouraged.

The full text of Statement No. 104 can be found here. 

 

Published: 12/01/2024

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