The GASB has issued an Omnibus Statement No. 92 to address various accounting and financial reporting issues that have been identified during the implementation and application of several GASB pronouncements. The GASB issues omnibus statements to correct, clarify and provide additional guidance on previously issued pronouncements.

Issue 1:  Effective date of Statement No. 87 Leases and Implementation Guide 2019-3

The requirements of Statement No.87 are effective for fiscal years beginning after December 15, 2019 and all reporting periods thereafter. Earlier application is encouraged.

Issue 2:  Intra-Entity Transfer of Assets

Guidance is provided on the reporting of transfers of assets between the primary government employer and a component unit pension plan or other post-employment benefit plan (OPEB). Any difference between the amount paid by the pension plan or OPEB plan, exclusive of amounts that may be refundable, and the carrying value of the assets transferred should be reported as follows:

• As an employer contribution or a nonemployer contributing entity contribution to the pension plan or OPEB plan in accordance with the requirements of Statements No. 68 and 75 in the separately issued statements of the employer or nonemployer contributing entity and in the financial statements of the reporting entity.
• As an employer contribution or a nonemployer contributing entity contribution in accordance with the requirements of Statements No. 67 and 74, as applicable, in the stand-alone statements of the pension plan or OPEB plan and in the financial statements of the reporting entity.

Issue 3:  Reporting Assets Accumulated for Defined Benefit Postemployment Benefits Provided through Plans That Are Not Administered through Trusts That Meet Specified Criteria

The guidance of Statements No. 73 and 74, as amended, is applicable to circumstances in which Statement No. 84 requires the reporting of assets that are accumulated for purposes of providing pensions or OPEB through defined benefit pension plans or defined benefit OPEB plans that are not administered through trusts that meet criteria as specified in Statements No. 73 or Statement No. 74.

Issue 4: The Applicability of Certain Requirements of Statement No. 84, Fiduciary Activities, to Postemployment Benefit Arrangements

A government that reports a fiduciary activity for assets that are accumulated for purposes of providing pensions or OPEB through defined benefit pension plans or defined benefit OPEB plans that are not administered through trusts that meet the criteria as outlined in Statements No. 73 or 74, respectively, should apply the requirements in paragraph 21 of Statement No. 84 with regard to recognition of a liability to the beneficiary (employer).

The requirements in paragraphs 22 and 25 of Statement No. 84 should be applied to the reporting of defined benefit pension plans and defined benefit OPEB plans; however, those requirements should not be applied to the reporting of defined contribution pension plans or defined contribution OPEB plans.

Issue 5:  Exception to Acquisition Value in a Government Acquisition

In a government acquisition, the acquiring government should measure liabilities and assets, if any, related to the acquired entity’s asset retirement obligations that are within the scope of Statement No. 83.

Issue 6:  Reinsurance Recoveries

In relation to accounting for risk financing and insurance-related activities of public entity risk pools, amounts that are recoverable from reinsurers or excess insurers and that relate to paid claims and claim adjustment expenses may be reported as reductions of expenses but are not required to be.

Issue 7: Nonrecurring Fair Value Measurements

For the purposes of applying paragraph 81 of Statement No. 72, an example of nonrecurring fair value measurements of assets or liabilities that other Statements require or permit in the statement of net position in particular circumstances is presented in paragraph 455 of Statement No. 62.

Issue 8: Terminology Used to Refer to Derivative Instruments

The terms derivative and derivatives in National Council on Governmental Accounting and GASB pronouncements are replaced with derivative instrument and derivative instruments, respectively.

The effective dates for the issues outlined above vary, with the earliest provisions being effective upon issuance of the Omnibus Statement.

The full text of Statement No. 92 is available here.

 

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