Omnibus
An Overview of GASB’s
Omnibus 2022 Statement
Project Description: The objective of this proposed project is to address various technical corrections and other practice issues that have been identified in practice.
Status: Final Statement, Omnibus 2022, approved: April 2022
Background: The project will address the following issues:
Remeasurement of Certain Assets and Liabilities
Statements No. 87, Leases; No. 94, Public-Private and Public-Public Partnerships and Availability Payment Arrangements; and No. 96, Subscription-Based Information Technology Arrangements, each provide that the asset or liability (as applicable in the context of each pronouncement) is not required to be remeasured solely for a change in an index or a rate used to determine variable payments. This project would address the appropriate reporting of those transactions when that circumstance is encountered.
Effect of a Purchase Option on Contract Terms and the Measurement of the Liability
The lease term is the period during which a lessee has a noncancelable right to use an underlying asset, plus periods covered by a lessee’s option to terminate the lease if it is reasonably certain, that the lessee will not exercise that option. If a lessee determines that a purchase option will be exercised, the option period is not included in the lease term; however, the exercise price of the purchase option is only included in the measurement of the liability when payment is reasonably certain. Statements 94 and 96 include similar provisions in determining the lease term but do specifically address purchase options. This project would address that difference.
Derivative Instruments That Are Neither Hedges nor Investments
Statement No. 53, Accounting and Financial Reporting for Derivative Instruments, categorizes all derivative instruments that are not effective hedges as investments. However, certain derivative instruments that are not effective hedges also do not meet the definition of an investment in Statement No. 72, Fair Value Measurement and Application. This project would consider whether a third category of derivative instruments should be established.
Exchange Financial Guarantees
Statement No. 70, Accounting and Financial Reporting for Nonexchange Financial Guarantees, does not apply to financial guarantees made or received by governments in an exchange or exchange-like transaction. This project would consider establishing guidance specifically for exchange and exchange-like financial guarantees.
Other Technical Corrections
Current Codification language uses outdated balance sheet terminology and incorrectly refers to fund equity and other terms. This project would consider minor terminology and other technical corrections in order to make the Codification consistent with current guidance established in the original pronouncements, as amended.
Accounting and Financial Reporting Issues: The following issues will be considered:
The Board reviewed a ballot draft of a final statement and voted unanimously to approve the issuance of Statement No. 99, Omnibus 2022.
Minutes of Meetings, March 8–10, 2022
The Board reviewed a preballot draft of a final Statement, Omnibus 2022, and discussed clarifying edits.
Next, the Board discussed the characteristics of the accounting and financial reporting information that will result from the provisions of a final Statement. The Board tentatively agreed that the information meets all the characteristics of Group 1 information and, therefore, is within the scope of the GASB’s authority.
Finally, the Board discussed whether the expected benefits to users and other stakeholders resulting from the application of the requirements justify the perceived costs to preparers and other stakeholders of implementation and ongoing compliance. The Board tentatively decided that the expected benefits justify the perceived costs.
The Board directed the project staff to prepare a ballot draft of a final Statement for discussion at the April 2022 Board meeting.
Minutes of Meetings, June 30–July 2, 2021
The Board deliberated on how to account for consideration received by a guarantor government in an exchange or exchange-like financial guarantee. The Board tentatively decided not to propose guidance in the Omnibus Exposure Draft.
The Board reviewed a ballot draft of an Exposure Draft of a proposed Statement, Omnibus 20XX, and discussed clarifying edits. The Board voted unanimously to approve the issuance of the Exposure Draft.
Minutes of Meetings, December 14–16, 2021
The Board continued redeliberations on the Omnibus project by discussing topics related to the provisions in the Exposure Draft (ED), Omnibus 20XX, on derivative instruments that are neither investment derivative instruments nor hedging derivative instrument. The Board tentatively decided to reaffirm the proposal that Statement No. 53, Accounting and Financial Reporting Derivative Instruments, be amended to include a third category for those derivative instruments. Furthermore, the Board tentatively decided to title the new derivative instrument category other derivative instruments. Lastly, the Board tentatively decided to define the third derivative instrument category as “derivative instruments that do not meet the definition of hedging derivative instruments or investment derivative instruments.” Those would include, but not be limited to, derivative instruments that were intended to hedge but do not, or no longer meet the hedge effectiveness criteria.
Minutes of Meetings, November 2–4, 2021
The Board began redeliberations on the Omnibus project by discussing topics related to the provisions in the Exposure Draft (ED), Omnibus 20XX, on exchange or exchange-like financial guarantees, leases, public-private and public-public partnerships (PPPs), and subscription-based information technology arrangements (SBITAs).
First, the Board discussed stakeholder feedback related to exchange or exchange-like financial guarantees. The Board tentatively decided that the provisions in the ED related to liability recognition, measurement, and disclosure provisions for exchange or exchange-like financial guarantees should be carried forward to a final Statement. Furthermore, the Board tentatively decided that the provisions for exchange or exchange-like financial guarantees should not specify an expense or expenditure classification.
Next, the Board discussed whether a final Statement should include guidance on the recognition of consideration received by guarantors in exchange or exchange-like financial guarantee transactions. The Board tentatively decided that a final Statement should not include such guidance and that the Basis for Conclusions should be expanded to better explain the Board’s reasoning.
The Board continued deliberations by discussing stakeholder feedback related to leases, PPPs, and SBITAs. The Board tentatively decided that the provisions in the ED related to lease term, PPP term, and subscription term should be carried forward to a final Statement. The Board also tentatively decided that the lease term (SBITA term) of a short-term lease (short-term SBITA) that is modified should be reassessed from inception. Lastly, the Board tentatively decided that the provisions in the ED related to lease, PPP, and SBITA remeasurement should be carried forward to a final Statement.
The Board concluded by discussing the proposed guidance in the ED on variable lease payments and lease incentives. The Board tentatively decided that the provisions related to variable lease payments and lease incentives should be carried forward to a final Statement.
Minutes of Meetings, June 30–July 2, 2021
The Board deliberated on how to account for consideration received by a guarantor government in an exchange or exchange-like financial guarantee. The Board tentatively decided not to propose guidance in the Omnibus Exposure Draft.
The Board reviewed a ballot draft of an Exposure Draft of a proposed Statement, Omnibus 20XX, and discussed clarifying edits. The Board voted unanimously to approve the issuance of the Exposure Draft.
Minutes of Meetings, May 20–21, 2021
The Board continued deliberations on the Omnibus project with a discussion about disclosure requirements for exchange and exchange-like financial guarantees.
The Board first discussed whether disclosures for nonexchange financial guarantees in Statement No. 70, Accounting and Financial Reporting for Nonexchange Financial Guarantees, should be required for exchange and exchange-like financial guarantees. The Board tentatively decided to propose that such disclosure requirements should be applied to exchange and exchange-like financial guarantees. The Board also discussed how those disclosure requirements should be applied. The Board tentatively decided to propose that cumulative amounts of indemnification payments related to exchange and exchange-like financial guarantees should be allowed to be disclosed on a prospective basis. The proposed disclosures would include the date through which the cumulative amounts were determined.
Following these deliberations, the Board discussed whether the proposed requirements to be included in the Exposure Draft of a proposed Statement, Omnibus 20XX, meet all of the characteristics of Group 1 information, and therefore, are within the scope of the GASB’s authority. The Board tentatively decided that the proposed requirements meet these characteristics, and therefore, are within the scope of the GASB’s authority. Next, the Board discussed whether the expected benefits of the proposed requirements in the Exposure Draft, Omnibus 20XX, will justify the perceived costs of implementation and ongoing compliance. The Board tentatively decided that the expected benefits will justify the perceived costs. The Board then discussed the appropriate comment period for feedback on the Exposure Draft, Omnibus 20XX. The Board tentatively decided that the comment period for feedback should be 60 days.
To close deliberations, the Board discussed a preballot draft of an Exposure Draft of a proposed Statement, Omnibus 20XX. The Board discussed recognition in exchange or exchange-like financial guarantees when consideration is received in advance of providing the guarantee protection. The Board tentatively decided to propose that a deferred inflow of resources should be recognized until the period in which the guarantee protection is provided. The Board also suggested other clarifying edits to the draft.
Finally, the Board agreed to move forward with a ballot draft of an Exposure Draft of a proposed Statement, Omnibus 20XX.
Minutes Archive
Statement No. 99, Omnibus 2022, was approved for issuance in April 2022.
Omnibus 2022 Statement
Project Description: The objective of this proposed project is to address various technical corrections and other practice issues that have been identified in practice.
Status: Final Statement, Omnibus 2022, approved: April 2022
- Background
- Accounting and Financial Reporting Issues
- Project History
- Recent Minutes
- Minutes Archive
- Tentative Board Decisions to Date
- Project staff:
Background: The project will address the following issues:
Remeasurement of Certain Assets and Liabilities
Statements No. 87, Leases; No. 94, Public-Private and Public-Public Partnerships and Availability Payment Arrangements; and No. 96, Subscription-Based Information Technology Arrangements, each provide that the asset or liability (as applicable in the context of each pronouncement) is not required to be remeasured solely for a change in an index or a rate used to determine variable payments. This project would address the appropriate reporting of those transactions when that circumstance is encountered.
Effect of a Purchase Option on Contract Terms and the Measurement of the Liability
The lease term is the period during which a lessee has a noncancelable right to use an underlying asset, plus periods covered by a lessee’s option to terminate the lease if it is reasonably certain, that the lessee will not exercise that option. If a lessee determines that a purchase option will be exercised, the option period is not included in the lease term; however, the exercise price of the purchase option is only included in the measurement of the liability when payment is reasonably certain. Statements 94 and 96 include similar provisions in determining the lease term but do specifically address purchase options. This project would address that difference.
Derivative Instruments That Are Neither Hedges nor Investments
Statement No. 53, Accounting and Financial Reporting for Derivative Instruments, categorizes all derivative instruments that are not effective hedges as investments. However, certain derivative instruments that are not effective hedges also do not meet the definition of an investment in Statement No. 72, Fair Value Measurement and Application. This project would consider whether a third category of derivative instruments should be established.
Exchange Financial Guarantees
Statement No. 70, Accounting and Financial Reporting for Nonexchange Financial Guarantees, does not apply to financial guarantees made or received by governments in an exchange or exchange-like transaction. This project would consider establishing guidance specifically for exchange and exchange-like financial guarantees.
Other Technical Corrections
Current Codification language uses outdated balance sheet terminology and incorrectly refers to fund equity and other terms. This project would consider minor terminology and other technical corrections in order to make the Codification consistent with current guidance established in the original pronouncements, as amended.
Accounting and Financial Reporting Issues: The following issues will be considered:
- Leases and related pronouncements:
- Remeasurement of assets and liabilities solely for a change in an index or rate used to determine variable payments
- Effect of a purchase option on contract terms and measurement of the liability
- Classification of derivative instruments that are neither hedges nor investments
- Recognition of exchange and exchange-like financial guarantees
- Technical corrections to terminology in the Codification.
- Added to current technical agenda: August 2020
- Consultative group appointed? No
- Deliberations began: September 2020
- Exposure Draft approved: July 2021
- Comment period: July 2021–September 2021
- Redeliberations began: November 2021
Omnibus—Recent Minutes
Minutes of Meetings, April 19–21, 2022The Board reviewed a ballot draft of a final statement and voted unanimously to approve the issuance of Statement No. 99, Omnibus 2022.
Minutes of Meetings, March 8–10, 2022
The Board reviewed a preballot draft of a final Statement, Omnibus 2022, and discussed clarifying edits.
Next, the Board discussed the characteristics of the accounting and financial reporting information that will result from the provisions of a final Statement. The Board tentatively agreed that the information meets all the characteristics of Group 1 information and, therefore, is within the scope of the GASB’s authority.
Finally, the Board discussed whether the expected benefits to users and other stakeholders resulting from the application of the requirements justify the perceived costs to preparers and other stakeholders of implementation and ongoing compliance. The Board tentatively decided that the expected benefits justify the perceived costs.
The Board directed the project staff to prepare a ballot draft of a final Statement for discussion at the April 2022 Board meeting.
Minutes of Meetings, June 30–July 2, 2021
The Board deliberated on how to account for consideration received by a guarantor government in an exchange or exchange-like financial guarantee. The Board tentatively decided not to propose guidance in the Omnibus Exposure Draft.
The Board reviewed a ballot draft of an Exposure Draft of a proposed Statement, Omnibus 20XX, and discussed clarifying edits. The Board voted unanimously to approve the issuance of the Exposure Draft.
Minutes of Meetings, December 14–16, 2021
The Board continued redeliberations on the Omnibus project by discussing topics related to the provisions in the Exposure Draft (ED), Omnibus 20XX, on derivative instruments that are neither investment derivative instruments nor hedging derivative instrument. The Board tentatively decided to reaffirm the proposal that Statement No. 53, Accounting and Financial Reporting Derivative Instruments, be amended to include a third category for those derivative instruments. Furthermore, the Board tentatively decided to title the new derivative instrument category other derivative instruments. Lastly, the Board tentatively decided to define the third derivative instrument category as “derivative instruments that do not meet the definition of hedging derivative instruments or investment derivative instruments.” Those would include, but not be limited to, derivative instruments that were intended to hedge but do not, or no longer meet the hedge effectiveness criteria.
Minutes of Meetings, November 2–4, 2021
The Board began redeliberations on the Omnibus project by discussing topics related to the provisions in the Exposure Draft (ED), Omnibus 20XX, on exchange or exchange-like financial guarantees, leases, public-private and public-public partnerships (PPPs), and subscription-based information technology arrangements (SBITAs).
First, the Board discussed stakeholder feedback related to exchange or exchange-like financial guarantees. The Board tentatively decided that the provisions in the ED related to liability recognition, measurement, and disclosure provisions for exchange or exchange-like financial guarantees should be carried forward to a final Statement. Furthermore, the Board tentatively decided that the provisions for exchange or exchange-like financial guarantees should not specify an expense or expenditure classification.
Next, the Board discussed whether a final Statement should include guidance on the recognition of consideration received by guarantors in exchange or exchange-like financial guarantee transactions. The Board tentatively decided that a final Statement should not include such guidance and that the Basis for Conclusions should be expanded to better explain the Board’s reasoning.
The Board continued deliberations by discussing stakeholder feedback related to leases, PPPs, and SBITAs. The Board tentatively decided that the provisions in the ED related to lease term, PPP term, and subscription term should be carried forward to a final Statement. The Board also tentatively decided that the lease term (SBITA term) of a short-term lease (short-term SBITA) that is modified should be reassessed from inception. Lastly, the Board tentatively decided that the provisions in the ED related to lease, PPP, and SBITA remeasurement should be carried forward to a final Statement.
The Board concluded by discussing the proposed guidance in the ED on variable lease payments and lease incentives. The Board tentatively decided that the provisions related to variable lease payments and lease incentives should be carried forward to a final Statement.
Minutes of Meetings, June 30–July 2, 2021
The Board deliberated on how to account for consideration received by a guarantor government in an exchange or exchange-like financial guarantee. The Board tentatively decided not to propose guidance in the Omnibus Exposure Draft.
The Board reviewed a ballot draft of an Exposure Draft of a proposed Statement, Omnibus 20XX, and discussed clarifying edits. The Board voted unanimously to approve the issuance of the Exposure Draft.
Minutes of Meetings, May 20–21, 2021
The Board continued deliberations on the Omnibus project with a discussion about disclosure requirements for exchange and exchange-like financial guarantees.
The Board first discussed whether disclosures for nonexchange financial guarantees in Statement No. 70, Accounting and Financial Reporting for Nonexchange Financial Guarantees, should be required for exchange and exchange-like financial guarantees. The Board tentatively decided to propose that such disclosure requirements should be applied to exchange and exchange-like financial guarantees. The Board also discussed how those disclosure requirements should be applied. The Board tentatively decided to propose that cumulative amounts of indemnification payments related to exchange and exchange-like financial guarantees should be allowed to be disclosed on a prospective basis. The proposed disclosures would include the date through which the cumulative amounts were determined.
Following these deliberations, the Board discussed whether the proposed requirements to be included in the Exposure Draft of a proposed Statement, Omnibus 20XX, meet all of the characteristics of Group 1 information, and therefore, are within the scope of the GASB’s authority. The Board tentatively decided that the proposed requirements meet these characteristics, and therefore, are within the scope of the GASB’s authority. Next, the Board discussed whether the expected benefits of the proposed requirements in the Exposure Draft, Omnibus 20XX, will justify the perceived costs of implementation and ongoing compliance. The Board tentatively decided that the expected benefits will justify the perceived costs. The Board then discussed the appropriate comment period for feedback on the Exposure Draft, Omnibus 20XX. The Board tentatively decided that the comment period for feedback should be 60 days.
To close deliberations, the Board discussed a preballot draft of an Exposure Draft of a proposed Statement, Omnibus 20XX. The Board discussed recognition in exchange or exchange-like financial guarantees when consideration is received in advance of providing the guarantee protection. The Board tentatively decided to propose that a deferred inflow of resources should be recognized until the period in which the guarantee protection is provided. The Board also suggested other clarifying edits to the draft.
Finally, the Board agreed to move forward with a ballot draft of an Exposure Draft of a proposed Statement, Omnibus 20XX.
Minutes Archive
Omnibus—Tentative Board Decisions to Date
Statement No. 99, Omnibus 2022, was approved for issuance in April 2022.