What is the maximum period of subscription-based information technology agreement (SBITA), including any options to extend, that is classified as short term?
Correct Answer: B
According to GASB Statement No. 96 (Subscription-Based Information Technology Arrangements or SBITAs), a subscription agreement is considered "short-term" if the maximum possible term (including renewal options) is 12 months or less. Short-term SBITAs are not reported as subscription liabilities and are accounted for as outflows (expenses or expenditures) when incurred. Relevant References: GASB Statement No. 96 - SBITAs (Issued May 2020) GASB Implementation Guide No. 2021-1 - Q&A on SBITAs GFOA Advisory - Cloud Computing and Subscription Agreements B). 12 months
