GASB Issues Statement No. 104 Disclosure of Certain Capital Assets

The Governmental Accounting Standards Board (GASB) issued Statement No.104, Disclosure of Certain Capital Assets (the Statement) to provide clearer, more granular information about certain types of capital assets. Recognizing that stakeholders evaluate physical property, intangible rights, and assets slated for sale using different risk and value metrics, the Statement mandates enhanced disclosures to improve overall financial transparency. 

Separate Disclosure of Certain Intangible Capital Assets

Within the capital asset footnote, the Statement requires separate disclosure of the following types of intangible capital assets, by major class of underlying assets:

• Lease assets reported in accordance with Statement No. 87, Leases 
• Intangible right-to-use assets recognized by an operator in accordance with Statement No. 94 Public-Private and Public-Public Partnerships and Availability Payment Arrangements
• Subscription assets reported in accordance with Statement No. 96, Subscription-Based Information Technology Arrangements
• Intangible assets other than those previously listed above

Intangible assets representing the right to use a type of underlying asset should not be disclosed in the same major class as any owned assets of that type.

Capital Assets Held for Sale

The Statement also defines a capital asset held for sale as one where (a) the government has decided to pursue sale and (b) it is probable (i.e. likely) that the sale will be finalized within one year of the financial statement date. Factors to consider when evaluating whether the sale is likely to be finalized within one year of the financial statement date include, but are not limited to:

• Whether the asset is available for immediate sale in its present condition
• Whether an active program to locate a buyer has been initiated, which may include the asset being put out for bid
• Market conditions for selling that type of asset
• Regulatory approvals needed to sell the asset

Evaluating the probability of a sale requires professional judgment from management and entities must re-evaluate these conditions at each reporting period. 

Entities should continue to report capital assets held for sale within the appropriate major asset class, however, separate note disclosure of these assets is required, including:

• The historical cost and accumulated depreciation (or amortization) of assets held for sale, by major asset class
• The carrying amount of debt for which the capital asset held for sale is pledged as collateral

Implementation Timeline

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