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Financial Facts

In a new statement issued March 20, GASB addressed a wide range of accounting challenges that preparers of financial statements for state and local governments encounter in preparing, implementing and applying a variety of GASB statements. GASB Statement No. 85, Omnibus 2017, addresses issues related to blending component units, goodwill, fair value measurement, pensions and other post-employment benefits (OPEB).  The standard addressed the following:

  • Blending a component unit when the primary government is a business-type activity
  • Reporting amounts previously reported as goodwill and “negative” goodwill
  • Classifying real estate held by insurance entities
  • Measuring certain money-market investments and participating interest-earning contracts at amortized cost
  • Timing the measurement of pension of OPEB liabilities and expenditures recognized in financial statements using the current financial resources measurement focus
  • Recognizing on-behalf payments for pensions or OPEB in employer financial statements
  • Presenting payroll-related measures in required supplementary information for purposes of reporting OPEB plans and employers that provide OPEB.
  • Classifying employer-paid member contributions for OPEB
  • Simplifying certain aspects of the alternative measurement method of OPEB
  • Accounting and financial reporting for OPEB provided through certain multiple-employer defined benefit OPEB plans.

Requirements take effect for reporting periods beginning after June 15, 2017, and GASB encourages earlier application.

VACo Contact: Vicky Steinruck, CPA

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