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GASB Addresses Variety of Practice Issues in Latest Proposal

Sep 26th 2016
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The Governmental Accounting Standards Board (GASB) issued an exposure draft on Sept. 26 that covers a diverse range of practice issues identified when certain GASB guidance was implemented and applied by state and local governments.

The proposal, Omnibus 201X, would “enhance consistency in the application of accounting and financial reporting requirements to certain practice issues,” the GASB states. “Consistent reporting would improve the usefulness of information for users of state and local government financial statements.”

The following topics are addressed in the exposure draft:

  • Blending a component unit in circumstances in which the primary government is a business-type activity currently reporting a single column for financial statement presentation.
  • Reporting goodwill and “negative” goodwill.
  • Classifying real estate held for both operations and investment purposes by insurance entities.
  • Measuring certain money-market investments and participating interest-earning investment contracts at amortized cost.
  • Timing of the measurement of pension and other post-employment benefits (OPEB) liabilities and related 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.
  • Accounting for and reporting OPEB provided through certain multiple-employer defined benefit OPEB plans.
  • Simplifications related to the alternative measurement method for OPEB.

If approved, the requirements of this proposed GASB statement would go into effect for reporting periods beginning after June 15, 2017. Earlier application would be encouraged.

Comments on the proposal are due by Nov. 23. Instructions on how to submit comments to the GASB can be found in the exposure draft.

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