The Governmental Accounting Standards Board (GASB) has issued statement no. 104, disclosures of certain capital assets – a pivotal update that reshapes how state and local governments report and disclose capital assets. This standard introduces new requirements aimed at enhancing transparency and consistency in financial reporting.
For professionals in accounting, audit and finance—especially those serving cities, counties, school districts, utilities, tribal governments and other public entities—understanding and implementing these changes is essential.
Key objectives of GASB 104
GASB 104 builds upon the foundational disclosure requirements of GASB statement no. 34 by mandating more granular detail in capital asset note disclosures. The statement focuses on two primary areas:
- Expanded disclosure of intangible capital assets
- New requirements for capital assets held for sale
These changes are designed to provide stakeholders with clearer insights into the nature, classification and potential disposition of governmental capital assets.
Enhanced intangible asset disclosures
One of the most significant changes under GASB 104 is the requirement to separately disclose various types of intangible assets in the capital asset roll-forward note. Governments must now break out these categories:
- Lease assets: Disclose right to use assets, under GASB statement no. 87, by major class of the underlying capital asset (land, buildings, equipment, etc.)
- Public-private or public-public partnership (PPP) operator intangible right-to-use assets
