GASB Statement 85 Addresses Various Practice Issues
The Governmental Accounting Standards Board (“GASB”) has issued GASB Statement No. 85, Omnibus 2017, to address the following accounting and financial reporting matters:
- Merging a component unit when the main government is a business activity being disclosed in a single column for financial reporting purposes.
- Disclosing amounts that were previously reported as goodwill and negative goodwill.
- Categorizing real estate held by insurance companies.
- Assessing specific money market investments and contributing interest-earning investment contracts at amortized cost.
- Timing of the assessment of pension and other postemployment benefits (“OPEB”) liabilities, and associated expenditures identified in financial statements that are prepared with the financial resources measurement focus.
- Identifying on-behalf payments for pensions or OPEB within employer financial statements.
- Simplifying certain parts of the OPEB alternative measurement method.
In addition, GASB Statement No. 85 addresses issues similarly covered under GASB Statement No. 78, Pensions Provided through Certain Multiple-Employer Defined Benefit Pension Plans, and GASB Statement No. 82, Pension Issues.
GASB Statement No. 85 is effective for reporting periods starting after June 15, 2017. Early application is permitted.