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:
Exposure Draft Approved: June 2019

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
Current Developments: The Board approved an Exposure Draft on June 24, 2019. The comment period will conclude on October 4, 2019.

Work Plan:
 

Board Meetings

Topics to Be Considered

September 2019: Comment period continues.
November 2019 (T/C): Redeliberate issues related to leases, asset retirement obligations in an acquisition, reinsurance recoveries, and nonrecurring fair value measurements.
December 2019 (T/C): Redeliberate issues related to intra-entity transfers of assets, reporting assets accumulated for defined benefit OPEB, application of Statement 84, and derivative instruments terminology.
January 2020: Review preballot draft of a final Statement.
January 2020 (T/C): Review ballot draft of a final Statement and consider for approval.

 

Omnibus—Recent Minutes


Minutes of Teleconference, June 24, 2019
 
The Board reviewed a ballot draft of an Exposure Draft of a proposed Statement, Omnibus 20XX, and discussed clarifying edits. The Board then voted unanimously to approve the issuance of the Exposure Draft.

Minutes of Meetings, June 5–6, 2019
 
The Board considered a revised staff recommendation regarding how to address an example that is misplaced in Section N50, “Nonexchange Transactions,” of the Codification of Governmental Accounting and Financial Reporting Standards (Codification). The Board tentatively agreed that the example that currently is in paragraph .133b of Section N50 of the Codification should be relocated to paragraph .132 of that section, rather than removed.
 
In addition, the Board reviewed a preballot draft of an Exposure Draft of a proposed Statement, Omnibus 20XX, and discussed clarifying edits. The Board agreed to move forward with a ballot draft of an Exposure Draft of a proposed Statement, which will be discussed at the June 24, 2019 teleconference.

Minutes of Teleconference, May 13, 2019

The Board discussed the proposed effective dates, transition guidance, and comment deadline for the Exposure Draft of the proposed Omnibus Statement. The Board tentatively decided that the effective dates should be proposed as follows:
  1. Requirements related to Statement No. 87, Leases; reinsurance recoveries; or terminology used to refer to derivative instruments—upon issuance of the final Omnibus Statement
  2. Requirements related to intra-entity transfers of assets or reporting assets accumulated for defined benefit postemployment benefits provided through plans that are not administered through trusts that meet specified criteria—for fiscal years beginning after June 15, 2020
  3. Requirements related to the applicability of certain requirements of Statement 84 to postemployment benefit arrangements or nonrecurring fair value measurements—for reporting periods beginning after June 15, 2020
  4. Requirements related to Statement No. 69, Government Combinations and Disposals of Government Operations—for government acquisitions occurring in periods beginning after June 15, 2020.
The Board also tentatively agreed that the proposed requirements related to Statement 69 should be applied prospectively and that all other proposed requirements should be applied retroactively. In addition, the Board tentatively decided that the comment period deadline for the Omnibus Exposure Draft should be October 4, 2019.
 
Next, the Board reviewed a draft of the Standards section of a proposed Exposure Draft and discussed clarifying edits. Related to Question 5.61.1 in Implementation Guide No. 2015-1, as amended, and parallel questions and answers, the Board tentatively decided that amendments should be considered for inclusion in a future Implementation Guidance Update project rather than in the Omnibus Exposure Draft. Additionally, the Board tentatively agreed that the Exposure Draft proposal related to paragraph 15 of Statement No. 48, Sales and Pledges of Receivables and Future Revenues and Intra-Entity Transfers of Assets and Future Revenues, as amended, should be limited to transfers of capital and financial assets and should include a requirement related to reporting intra-entity transfers in the stand-alone financial statements of a pension or OPEB plan.
 
Finally, the Board considered the costs and benefits of the proposed Statement and tentatively decided that the expected benefits justify the perceived costs of implementation and ongoing compliance. The Board agreed that a preballot draft of an Exposure Draft should be presented for discussion at the June 2019 meeting.

Minutes of Teleconference, April 1, 2019

The Board continued deliberations on the Omnibus project by considering whether the criteria in Statement No. 34, Basic Financial Statements—and Management's Discussion and Analysis—for State and Local Governments, for noncapitalized collections should be amended to allow for sales proceeds to be used for direct care of a collection. After discussion, including consideration of stakeholder outreach conducted by the project staff, the Board tentatively decided not to modify the criteria at this time.

The Board then discussed several potential clarifying amendments related to the effects of Statement No. 84, Fiduciary Activities, on other pronouncements and made the following tentative decisions:
  • To propose superseding the requirements in Statements No. 73, Accounting and Financial Reporting for Pensions and Related Assets That Are Not within the Scope of GASB Statement 68, and Amendments to Certain Provisions of GASB Statements 67 and 68, and No. 74, Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans, for recognition of a liability to employers and nonemployer contributing entities for the excess of assets over liabilities for benefit payments and administrative expenses in custodial funds in circumstances in which assets are accumulated for the pensions and OPEB of other employers and nonemployer contributing entities.
  • To propose amending paragraphs 5 and 116 of Statement 73, paragraphs 4 and 59 of Statement 74, Question 4.25 of Implementation Guide No. 2017-1, Implementation Guidance Update—2017, and Question 4.5 of Implementation Guide No. 2017-2, Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans, to replace references to “control” of assets in circumstances in which assets are accumulated for the pensions and OPEB of other employers and nonemployer contributing entities to avoid limiting the application of the associated requirements of those Statements.
  • To propose amending  the description of irrevocability that is presented in Questions 5.61.1 and 5.117.1 of Implementation Guide 2015-1, as amended, Question 4.9 of Implementation Guide 2017-2, and Question 4.8 in Implementation Guide No. 2017-3, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions (and Certain Issues Related to OPEB Plan Reporting), to remove the link between irrevocability and control of assets in light of the definition of control in Statement 84.
In addition, the Board tentatively decided to propose that paragraphs 22 and 25 of Statement 84 be amended to exclude defined contribution plans from their requirements so that such plans would be subject to application of the financial statement presentation and display requirements in paragraphs 20, 21, 23, and 24 of Statement 84.

Lastly, the Board discussed issues related to Statement No. 48, Sales and Pledges of Receivables and Future Revenues and Intra-Entity Transfers of Assets and Future Revenues. The Board tentatively decided to propose that the reporting provisions of paragraph 15 be amended to clarify that amounts associated with the transfer of capital or financial assets and future revenues from an employer or nonemployer contributing entity to a defined benefit pension or OPEB plan within the same financial reporting entity should be reported as contributions to the defined benefit pension or OPEB plan, in accordance with the requirements of Statement No. 68, Accounting and Financial Reporting for Pensions, or Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions, as applicable. In addition, the Board tentatively decided to propose that the requirements of paragraph 15 of Statement 48 also be codified in Section 2600, “Reporting Entity and Component Unit Presentation and Disclosure,” of the Codification.

Minutes of Teleconference, February 19, 2019
 
The Board continued deliberations on the Omnibus project by considering the measurement requirements for asset retirement obligations (AROs) in a government acquisition. The Board tentatively agreed to amend paragraph 34 of Statement No. 69, Government Combinations and Disposals of Government Operations, to propose an exception to the use of acquisition value in the measurement of an acquired ARO. Next, the Board discussed several technical corrections. The Board tentatively decided to amend paragraph 37 of Statement No. 10, Accounting and Financial Reporting for Risk Financing and Related Insurance Issues, to remove the phrase “and as reductions of expenses.” Additionally, the Board tentatively agreed that paragraph 81 of Statement No. 72, Fair Value Measurement and Application, should be amended to refer to paragraph 455 of Statement No. 62, Codification of Accounting and Financial Reporting Guidance Contained in Pre-November 30, 1989 FASB and AICPA Pronouncements, rather than to paragraph 453 of Statement 62. Furthermore, the Board tentatively decided that the scope of the Omnibus project should be expanded to (1) standardize terminology used in the Codification of Governmental Accounting and Financial Reporting Standards (Codification) to refer to derivative instruments, so that it is consistent with the terminology used in Statement No. 53, Accounting and Financial Reporting for Derivative Instruments, and (2) remove the pension example from paragraph .133 of Section N50, “Nonexchange Transactions,” in the Codification.

Minutes of Teleconference, January 7, 2019

The Board began deliberations on the omnibus project by considering amendments to paragraph 92 of Statement No. 87, Leases. The Board tentatively agreed to amend paragraph 92 of that Statement to state: “The requirements of this Statement are effective for fiscal years beginning after December 15, 2019, and all reporting periods thereafter. Earlier application is encouraged.” Subsequently, the Board discussed whether to amend paragraphs 93 and 94 of Statement 87 to require that leases be recognized and measured using the facts and circumstances that existed at the beginning of the period of implementation. The Board tentatively decided not to amend paragraphs 93 and 94 of Statement 87 and that the requirement that leases be recognized and measured using the facts and circumstances that existed at the beginning of the earliest period restated be retained.

Next, the Board discussed whether the date through which to consider subsequent events should be amended from the date the financial statements are issued. The Board tentatively decided that the date should not be changed. The Board then considered whether the date through which to consider information to be included in the management’s discussion and analysis (MD&A) should be amended from the date of the auditor’s report, as has tentatively been decided in the Financial Reporting Model project. The Board tentatively decided that the date through which to consider information to be included in the MD&A should be changed to the date the financial statements are issued and that this change should be proposed as part of the Financial Reporting Model project, rather than the Omnibus project.
 

Omnibus—Tentative Board Decisions to Date


The Exposure Draft, Omnibus 20XX, was approved in June 2019.