2023 Annual Comprehensive Financial Report

CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2023

NOTE 22 – CHANGE IN ACCOUNTING PRINCIPLE For fiscal year 2023, the City implemented Governmental Accounting Standards Board (GASB) Statement No. Statement No. 96, Subscription-Based Information Technology Arrangements (SBITA). It establishes requirements for SBITA accounting based on the principle that SBITA’s are financings of the right to use an underlying SBITA asset. These changes were incorporated in the City’s 2023 financial statements. The City’s recognition of the beginning balances related to the SBITA liability and the intangible right to use SBITA asset were equal balances and had no effect on the beginning net position of the Governmental Activities.

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