On March 20, 2017, the Governmental Accounting Standards Board (GASB) issued Statement No. 85, Omnibus 2017. The omnibus provides guidance on and clarification of a wide range of accounting and financial reporting issues related to the implementation and application of earlier GASB pronouncements.

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 (other post-employment benefits) 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 GASB No. 85 take effect for reporting periods beginning after June 15, 2017, and will be testable on the CPA Exam in the first testing window beginning six months after the pronouncement’s issuance date, or October 1, 2017.

It’s important to be aware of issuances that could impact how you answer the questions on the CPA Exam within that topic. Since exam material could conceivably change from one exam testing window to another, turn to Surgent for the latest updates. Our CPA Review team stays informed of all authoritative and pronouncement changes and ensures you’ll receive the news as soon as we do!

Susan J. Cox, M.Acc., CPA is a Senior Technical Editor for Surgent CPA Review. Susan received her graduate and undergraduate degrees from Florida State University. Prior to joining Surgent, Susan worked as a technical editor for Thomson Reuters, an accounting instructor for the University of South Florida, a senior internal auditor for GTE, and an experienced senior auditor for Arthur Andersen & Co.