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. Read More.
Decisions from FASB’s January 25 Meeting
In addition to making progress on its hedge accounting project , the Financial Accounting Standards Board (“FASB”) made decisions at its January 25 meeting on the following projects: Agenda Consultation. After reviewing feedback on its Invitation to Comment, Agenda Consultation, and discussing research to conduct on intangible assets, pensions and other postretirement benefit plans, and distinguishing liabilities from equity, the FASB made no technical decisions. The FASB plans to discuss feedback on reporting performance and cash flows at a later meeting. Disclosure Framework: Disclosure Review—Income Taxes. No technical decisions were made concerning the summary of comments the FASB received regarding the proposed Accounting Standards Update, Income Taxes. Read More.
Topics: Agenda Consultation, Disclosure Framework, Financial Accounting Standards Board "FASB", Income Taxes (Topic 740), Intangible Assets, Invitation to Comment, liabilities and equity, Other Postemployment Benefits "OPEB", pensions
GASB Omnibus Statement Proposed to Address Practice Issues
Newly proposed guidance by the Governmental Accounting Standards Board (“GASB”) seeks to address various reporting issues during the implementation of certain pronouncements. The Exposure Draft, Omnibus 201X, covers the following issues: Simplifications concerning the alternative measurement method for other postemployment benefits (“OPEB”). Reporting goodwill and negative goodwill. Disclosing on-behalf payments for pensions or OPEB in employer financial statements. Categorizing real estate for operations and investment reasons by insurance companies. Assessing specific money market investments and contributing interest-earning investment contracts at amortized cost. Comments on Omnibus 201X are due Wednesday, November 23. To download the Exposure Draft, visit the GASB website.
FASB Seeks Feedback on Agenda Considerations
The Financial Accounting Standards Board (“FASB”) has released an Invitation to Comment regarding possible financial accounting and reporting topics to add to its agenda. The Invitation to Comment features potential issues and solutions on intangible assets, pensions and other post-retirement benefit plans, distinguishing liabilities from equity, and reporting performance and cash flows. In particular, the FASB is seeking feedback on whether improvement opportunities exist for the financial reporting issues raised in the Invitation to Comment, the priority and approach the board should take in addressing each issue, and if any other financial reporting areas not listed in the document should. Read More.