Additional disclosures required by the GASB

To provide financial statements users with essential information about capital assets, the Governmental Accounting Standards Board (GASB) issued Statement 104, Disclosure of Certain Capital Assets.

Statement 104 requires certain types of capital assets to be disclosed separately in the note disclosures about capital assets.

The amended guidance also establishes disclosure requirements for capital assets held for sale.

Who is affected by the amended guidance in statement 104?

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

What changes with the amended guidance in statement 104?

Statement 34, Basic Financial Statements — and Management’s Discussion and Analysis — for State and Local Governments, requires certain information regarding capital assets to be presented by major class.

Under the current disclosure requirements, intangible right-to-use assets can be classified as capital assets due to the inclusion of intangible assets in the definition of a capital asset.

The amendments in Statement 104 require certain types of capital assets to be disclosed separately in the capital assets note disclosures as required by Statement 34.

Capital assets requiring separate disclosure

Statement 104 requires the following types of capital assets and related amortization to be disclosed separately in the note disclosures about capital assets:

• Lease assets reported in accordance with Statement 87, Leases, by major class of underlying asset.
• Intangible right-to-use assets recognized by an operator in accordance with Statement 94,