Financial Accounting Standards

Financial Reporting and Accounting Standards

Financial Reporting and Accounting Standards

The University of Virginia’s financial accounting policies and procedures follow the generally accepted accounting principles of fund accounting as prescribed by the Governmental Accounting Standards Board (GASB), the Financial Accounting Standards Board (FASB), and the National Association of College and University Business Officers (NACUBO)

Governmental Accounting Standards Board (GASB)

As an agency of the Commonwealth of Virginia, the primary GAAP guidance for the University is issued by the Governmental Accounting Standards Board (GASB). GASB sets accounting and financial reporting rules for governments, including public higher education institutions. The University must provide financial reporting consistent with generally accepted accounting principles for higher education and hospitals, which may include other standards in addition to GASB.

For more information, please visit Governmental Accounting Standards Board (GASB)

Financial Accounting Standards Board (FASB)

All University-Associated Organizations that use the University’s finance system must follow the standards for their industry. University-Associated Organizations follow the standards issued by the Financial Accounting Standards Board (FASB). Under GASB standards, the financial activity and position of University-Associated Organizations determined to be “significant” qualify as component units and must be included in the University’s financial statements.

For more information, please visit Financial Accounting Standards Board (FASB)

Statement Summary and Departmental Impacts from New Standards

FY24

Currently not applicable.

FY23

 

GASB Statement No. 96

Statement Summary

GASB Statement No. 96, Subscription-Based Information Technology Arrangements, fundamentally changes subscription-based information technology arrangements (SBITA) recognition, measurement, and related disclosures. A SBITA is defined as a contract that conveys control of the right to use another party’s information technology software, alone or in combination with tangible capital assets, as specified in the contract for a period of time in an exchange or exchange-like transaction. Under Statement No. 96, a government generally should recognize a right-to-use subscription asset (an intangible asset) and a corresponding subscription liability. The activities are reported on the Statement of Net Position, Statement of Revenue, Expenses, and Changes in Net Position, and Statement of Cash Flows as part of the basic financial statements.

Department Impacts

Financial Reporting & Accounting within UVAFinance identified in-scope activities and applied the new model in conjunction with impacted units. The activities are reported on the Statement of Net Position, Statement of Revenue, Expenses, and Changes in Net Position, and Statement of Cash Flows as part of the basic financial statements.