Summary - Statement No. 85

Summaries / Status

Summary of Statement No. 85
Omnibus 2017

(Issued 03/17)


The objective of this Statement is to address practice issues that have been identified during implementation and application of certain GASB Statements. This Statement addresses a variety of topics including issues related to blending component units, goodwill, fair value measurement and application, and postemployment benefits (pensions and other postemployment benefits [OPEB]). Specifically, this Statement addresses the following topics:
  • Blending a component unit in circumstances in which 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.

Effective Date


The requirements of this Statement are effective for reporting periods beginning after June 15, 2017. Earlier application is encouraged.

How the Changes in This Statement Will Improve Financial Reporting


The requirements of this Statement will enhance consistency in the application of accounting and financial reporting requirements. Consistent reporting will improve the usefulness of information for users of state and local government financial statements.



 


Unless otherwise specified, pronouncements of the GASB apply to financial reports of all state and local governmental entities, including general purpose governments; public benefit corporations and authorities; public employee retirement systems; and public utilities, hospitals and other healthcare providers, and colleges and universities. Paragraph 2 discusses the applicability of this Statement.