Project Pages

Omnibus

Project Description: This project will address various technical corrections and other practice issues that have been identified. Those issues include: the effective date of the leases standards; the definition of “collections;” pension and other postemployment benefit (OPEB) plan reporting of intra-entity transfers of assets; effects of the fiduciary activities standards on pension and OPEB reporting; the “available to be issued” concept; exceptions to the use of acquisition value in a government acquisition; a technical correction to a paragraph reference in the standards on fair value; and a technical correction to references associated with accounting for reinsurance recoveries.

Status:
Final Statement, Omnibus 2020, approved: January 2020

Omnibus—Project Plan


Background:

Effective Date of Statement 87

A government has requested a change to the effective date of Statement No. 87, Leases, from reporting periods beginning after December 15, 2019, to fiscal years beginning after that date.

Definition of Collections

Statement 34 provides an exception to the general requirement to report capital assets at their historical cost for collections of works of art or historical treasures that is consistent with related guidance provided by the FASB. The Statement lists three criteria that need to be met to constitute a “collection.” Recently, the American Alliance of Museums updated its definition of a collection and the FASB is in the process of amending its standards to reflect the new definition. The Board will consider whether to revise the criteria for a collection in Statement 34 as part of the project.

Intra-Entity Transfers of Assets

In the Exposure Draft, Implementation Guidance Update—2019, the staff proposed a question and answer that would clarify how pension plans should account for transfers of assets from employers, based on guidance for intra-entity transfers in Statement No. 48, Sales and Pledges of Receivable and Future Revenues and Intra-Entity Transfers of Assets and Future Revenues, as amended. As part of this project, the Board will consider clarifying the guidance for how the transaction should be reported by the employer and the plan when the plan is presented in financial statements for the financial reporting entity. The Board also will review the scope of transactions to which that guidance applies.

Certain Effects of Statement 84

In two instances, the effects of Statement No. 84, Fiduciary Activities, on the existing standards for pensions and OPEB were codified in a manner that does not appropriately apply the provisions of Statement 84. In this project, the Board will consider addressing those two issues.

Available to Be Issued

This portion of the project will consider issues related to the timing of events subsequent to the date of the financial statements for financial reporting purposes. The appropriateness of the term “before financial statements are issued” as used in Statement No. 56, Codification of Accounting and Financial Reporting Guidance Contained in the AICPA Statements of Auditing Standards, as amended, will be considered in determining what information should be displayed or disclosed.

Exceptions to Acquisition Value

In general, Statement No. 69, Government Combinations and Disposals of Government Operations, as amended, requires that a government use acquisition value to measure assets and liabilities obtained in a government acquisition. The Statement explicitly excludes the use of acquisition value for measuring certain assets and liabilities for which other measurement standards exist—those associated with pensions, OPEB, compensated absences, termination benefits, municipal solid waste landfills, and derivative instruments. In this part of the project, the Board will consider adding a specific exclusion for asset retirement obligations.

Technical Correction to Statement 72

This portion of the project will correct Statement No. 72, Fair Value Measurement and Application, as amended, for a misidentified paragraph reference to Statement No. 62, Codification of Accounting and Financial Reporting Guidance Contained in Pre-November 30, 1989 FASB and AICPA Pronouncements, as amended.

Reinsurance Recoveries

This portion of the project will consider resolving inconsistencies in how the insurance accounting standards refer to a netting provision for recoveries from reinsurers and excess insurers. Statement No. 10, Accounting and Financial Reporting for Risk Financing and Related Insurance Issues, as amended, currently states that such recoveries should be classified as a reduction of expenses. However, the same paragraph in Statement 10 also states that reinsurance recoveries may be netted against incurred claims costs, causing some stakeholders to question whether those requirements conflict with each other. The Board will consider clarifying the guidance.

Accounting and Financial Reporting Issues: The project will address issues related to the following topics:
  • Effective Date of Statement 87: Should the effective date of Statement 87 be changed from reporting periods beginning after December 15, 2019, to fiscal years beginning after that date?
  • Definition of Collections: Should the definition in Statement 34 of “collections” be amended to reflect the updates introduced by the American Alliance of Museums in 1993?
  • Intra-Entity Transfers of Assets: Should the guidance in Statement 48 be clarified to address how the transfer of assets reported by the primary government at historical cost be reflected in the financial statements?
  • Certain Effects of Statement 84: Should the term “control” introduced by the Statement be replaced in instances when the guidance could be applied to the assessment of certain potential fiduciary component units associated with pensions and OPEB?
  • Available to Be Issued: Should the concept of a financial report being “available to be issued” be introduced in determining subsequent events?
  • Exceptions to Acquisition Value: Should Statement 69 be amended to exclude the use of acquisition value for measuring asset retirement obligations?
  • Technical Correction to Statement 72: Should Statement 72 be amended to correct a misidentified paragraph reference to Statement 62, as amended?
  • Reinsurance Recoveries: Should inconsistencies in how the insurance accounting standards refer to a netting provision for recoveries from reinsurers and excess insurers be resolved?
Project History:
  • Added to current technical agenda: December 2018
  • Task force established? No
  • Deliberations began: January 2019
  • Exposure Draft approved: June 2019
  • Comment period: June–October 2019
  • Final Statement issued: January 2020

Omnibus—Minutes


Minutes of Teleconference, January 27, 2020
 
The Board reviewed a ballot draft of a final Statement, Omnibus 2020. The Board then voted unanimously to approve the issuance of Statement No. 92, Omnibus 2020.

Minutes Archive
 

Omnibus—Tentative Board Decisions to Date


Statement No. 92, Omnibus 2020, was approved in January 2020.