GASB Statement 85 Addresses Various Practice Issues

calendar iconMarch 24, 2017

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.