2019 & 2020-COH - DWS Financial Statements and Supplementary Information With Independent Auditor's Report

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County of Hawaii Department of Water Supply (A component unit of the County of Hawaii, State of Hawaii) NOTES TO FINANCIAL STATEMENTS June 30, 2020 and 2019 NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) operate or use a nonfinancial asset, such as infrastructure or other capital asset (the underlying PPP asset), for a period of time in an exchange or exchange -like transaction. This Statement also provides guidance for accounting and financial reporting for availability payment arrangements (APAs). As defined in this Statement, an APA is an arrangement in which a government compensates an operator for services that may include designing, constructing, financing, maintaining, or operating an underlying nonfinancial asset for a period of time in an exchange or exchange -like transaction. The requirements of this Statement are effective for reporting periods beginning after June 15, 2022. Management has not yet determined the effect this Statement will have on the Department's financial statements. The GASB issued Statement No. 95, Postponement of the Effective Dates of Certain Authoritative Guidance. This Statement extends the effective dates of the following Statements that may have an effect on the Department's financial statements as follows: • Statement No. 84; effective date postponed one year for reporting periods beginning after December 15, 2019 • Statement No. 87; effective date postponed eighteen months for reporting periods beginning after June 15, 2021 • Statement No. 90; effective date postponed one year for reporting periods beginning after December 15, 2019 • Statement No. 91; effective date postponed one year for reporting periods beginning after December 15, 2021 • Statement No. 92, paragraphs 6 and 7; effective date postponed one year for fiscal years beginning after June 15, 2021 • Statement No. 92, paragraphs 8, 9, and 12; effective date postponed one year for reporting periods beginning after June 15, 2021 The requirements of this Statement were effective in May 2020. The GASB issued Statement No. 96, Subscription -Based Information Technology Arrangements. This Statement provides guidance on the accounting and financial reporting for subscription -based information technology arrangements (SBITA) for government end users. This Statement (1) defines a SBITA; (2) establishes that a SBITA results in a right -to -use subscription asset - an intangible asset - and a corresponding subscription liability; (3) provides the capitalization criteria for outlays other than subscription payments, including implementation costs of a SBITA; and (4) requires note disclosures regarding a SBITA. The requirements of this Statement are effective for reporting periods beginning after June 15, 2022. Management has not yet determined the effect this Statement will have on the Department's financial statements. 23