Focus Area: Enhancement of certain types of Capital Asset Disclosures
GASB 104 – Disclosure of Certain Capital Assets
February 2026
In September 2024, the Governmental Accounting Standards Board (GASB) issued GASB Statement No. 104, Disclosure of Certain Capital Assets. This statement focuses on enhancing the usefulness of capital asset reporting in governmental financial statements. It provides users of government financial statements with important information about specific kinds of capital assets. It establishes transparency and consistency in financial reporting for capital assets.
GASB 104 requires certain types of capital assets to be presented separately within the capital asset note disclosures required by Statement 34. Lease assets recorded under Statement 87, and intangible right-to-use assets recorded under Statement 94 for public-private and public-public partnerships arrangements should be presented separately by major class of the underlying assets. Subscription assets recorded under Statement 96 should also be presented separately. It also requires any other intangible assets other than those three categories be presented separately by major class. (ex. land and easements reported separately).
GASB 104 also requires disclosures for capital assets held for sale. A capital asset is considered “held for sale” when the government intends to sell it and it is likely that the sale will be completed within one year of the financial statement date. Governments will need to evaluate each reporting period how likely it is that the capital asset will be sold within the required time frame.
Effective Date
GASB Statement No.104 is effective for fiscal years beginning after June 15, 2025, and all reporting periods thereafter, and applies to financial reports of all state and local government entities. This statement is to be applied retroactively where practical.
GASB 104 Implementation:
Separate Disclosure of Certain Capital Assets
Lease assets, Intangible Right to Use assets, Public private and public-public assets and SBITA assets are currently separately disclosed in Note 5 in the ACFR.
Other intangible assets such as land and permanent easements are currently aggregated and not separately disclosed. Likewise, right-to-use land and permanent easements are not separately disclosed.
In FY 2026, general ledger accounts were set up to facilitate the separate disclosure of land, easements, right to use land and right to use easements. This will help with the presentation of the assets at the State Level in the ACFR.
The accounts for land, easements, right to use land and right to use easements are as follows.
Capital Assets – Non-Depreciable
- 12700000 - Land
- 12751000 - Easements
Capital Assets – Depreciable
- 12700200 - RTU-EASEMENTS
- 12797500 - ACCUM DEPREC-RTU EASEMENTS
- 54750000 - RTU-EASEMENTS Capital Outlay
Renamed Existing Accounts To:
- 12700100 - RTU-LAND
- 12797000 - ACCUM DEPREC-RTU Land
- 54140000 - RTU-LAND Capital Outlay
Agencies will begin using the general ledger accounts in FY 2026. These accounts will need to be used because currently in the general ledger the land and easements are aggregated and recorded under the same general ledger accounts for both cost and depreciation. This is the same for rtu land and rtu easements. They are also aggregated and recorded under the same general ledger accounts. A reclass will need to be done to move easements from land and to move rtu easements from rtu land. NCFS FA users can make this change in the FA module which will then flow to the general ledger.
Disclosure of Capital Asset Held for Sale
Capital assets held for sale will be disclosed at the State Level in the ACFR. Worksheet 216 and Narrative worksheet 216 have been created in the FY 2026 ACFR package to facilitate this.
End users will need to evaluate their capital assets to determine if they are held for sale
Capital assets are considered held for sale if:
- The government has decided to pursue the sale of capital assets and
- It is probable that the sale will be finalized within one year of the financial statement date.
If the two criteria above are met, worksheet 216 along with narrative worksheet 216 will need to be completed.
On the narrative worksheet 216, the following should be disclosed:
- 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.
To gain additional understanding of GASB 104, please refer to the following resources:
- GASB webpage from which you can access a PDF file of GASB 104 as well as other GASB pronouncements - GASB Pronouncements.
Thank you for your time and attention to this important change. OSC will continue to provide updates as the standard is implemented. Questions regarding this specific update should be directed to Kim Battle at kim.battle@ncosc.gov.