F8: Deferred Inflows and Outflows

Question 1

What is a deferred inflow of resource?

Answer 1

acquisition of net assets that is applicable to a future reporting period. deferred inflows have a negative effect on net positions and are reported following liabilities

Question 2

What is a deferred outflow of resource?

Answer 2

consumption of net assets that is applicable to future reporting period. positive effect on net position following assets before liabilities

Question 3

Assets associated with unavailable revenues (such as property taxes collected more than 60 days after YE) should be recorded how?

Answer 3

DR A/R

CR Deferred inflow of resources

Question 4

statement of financial position for a FIDUCIARY fund is?

Answer 4

assets + deferred outflows of resources minus liabilities + deferred inflow of resources = net position

Question 5

statement of financial position for GOV’T funds is?

Answer 5

assets + deferred outflows of resources = liabilities + deferred inflows of resources + fund balance

gov’t funds must present their statement of financial position in a BS rather than a net position format