GASB addresses wide range of accounting issues

By Ken Tysiac

In a new standard issued Monday, GASB addressed a wide range of accounting challenges that state and local government financial statement preparers have encountered while 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 and application, pensions, and other post-employment benefits (OPEB).

The standard addresses the following topics:

  • Blending a component unit when the primary government is a business-type activity that reports in a single column for financial statement presentation.
  • 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 investment contracts at amortized cost.
  • Timing of the measurement of pension or OPEB liabilities and expenditures recognized in financial statements prepared 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 by OPEB plans and employers that provide OPEB.
  • Classifying employer-paid member contributions for OPEB.
  • Simplifying certain aspects of the alternative measurement method for OPEB.
  • Accounting and financial reporting for OPEB provided through certain multiple-employer defined benefit OPEB plans.

The requirements in the statement take effect for reporting periods beginning after June 15, 2017, and GASB encourages earlier application.

Ken Tysiac (Kenneth.Tysiac@aicpa-cima.com) is a JofA editorial director.

SPONSORED REPORT

Get your clients ready for tax season

Upon its enactment in March, the American Rescue Plan Act (ARPA) introduced many new tax changes, some of which retroactively affected 2020 returns. Making the right moves now can help you mitigate any surprises heading into 2022.

100th ANNIVERSARY

Black CPA Centennial, 1921–2021

With 2021 marking the 100th anniversary of the first Black licensed CPA in the United States, a yearlong campaign kicked off to recognize the nation’s Black CPAs and encourage greater progress in diversity, inclusion, and equity in the CPA profession.