On September 24, 2024, the GASB issued Statement No. 104, Disclosure of Certain Capital Assets to provide users of state and local government financial statements with improved disclosures of information about certain types of capital assets.  It also establishes additional disclosure requirements for capital assets held for sale.

What Are the Main Provisions?

Separate Disclosure for Certain Capital Assets

This Statement requires the following certain types of capital assets, and related amortization, to be disclosed separately in the capital assets note disclosures required by Statement No. 34:

• Lease assets recognized in accordance with Statement No. 87, Leases, by major class of underlying asset;

• Intangible right-to-use assets recognized in accordance with Statement No. 94, Public-Private and Public-Public Partnerships and Availability Payment Arrangements, by major class of underlying asset;

• Subscription assets recognized in accordance with Statement No. 96, Subscription-Based Information Technology Arrangements; and

• Intangible assets, other than the three types listed above, by major class of asset.

Additional Disclosures for Capital Assets Held for Sale

Definition: 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.

This Statement requires that capital assets held for sale be evaluated each reporting period. Governments should disclose:

• The ending balance of capital assets held for sale, with separate disclosure for historical cost and accumulated depreciation by major class of asset; and
• The carrying amount of debt for which the capital assets held for sale are pledged as collateral for each major class of asset.

Who Is Affected by this Statement?

The requirements apply to the financial statements of all state and local governments.

When Will the Statement Be Effective and What Are the Transition Requirements?

The requirements of this Statement are effective for fiscal years beginning after June 15, 2025, and all reporting periods thereafter.  Earlier application is encouraged.

The requirements of this Statement should be applied retroactively to all periods presented in the basic financial statements, if practicable. A government should disclose that it implemented this Statement and any financial statement line items (excluding totals and subtotals) affected by its application. If application to prior periods presented is not practicable, the reason for not applying this Statement to prior periods presented should be disclosed.

Read full Statement here:  GASB Statement No. 104