Deferred outflow of resources – a consumption of net assets by the government that is applicable to a future reporting period. For example, prepaid items and deferred charges.
What are deferred outflows and inflows?
The thing that is being deferred is the recognition of those inflows and outflows as revenues and expenses. Recognition of revenues and expenses is deferred until the future period to which the inflows and outflows are related. Expenses reduce net position—which makes a government look less healthy.
Where should a deferred inflow of resources be reported on the financial statements?
Statement 63 established that a deferred outflow of resources should be reported on the statement of financial position in a separate section directly following assets, and a deferred inflow of resources section should directly follow liabilities.
What is gasb65?
65 is the result of GASB’s comprehensive review of common balances or transactions previously reported as assets or liabilities for which the board believes financial reporting needs to change. Statement No. 65 was issued in March of 2012 and will be effective for reporting periods ending on or after December 31, 2013.
What is an outflow of resources?
Outflows of resources (i.e., expenses) is a consumption of net assets by the government that is applicable to the current reporting period. Example: debt issuance costs (other than prepaid insurance), etc.
Is Deferred revenue a liability?
Deferred revenue is a liability because it reflects revenue that has not been earned and represents products or services that are owed to a customer. As the product or service is delivered over time, it is recognized proportionally as revenue on the income statement.
What is the difference in reporting exchange and a Nonexchange transaction?
An exchange or exchange-like transaction is one in which each party receives and sacrifices something of approximate equal value. A non-exchange transaction is one in which one party receives something of value without directly giving value in exchange.
What are the 3 categories of net position?
Net position has the following three components:
- net investment in capital assets;
- restricted net position; and.
- unrestricted net position.
How do I find my major funds for GASB 34?
Major funds are funds whose revenues, expenditures/expenses, assets, or liabilities (excluding extraordinary items) are at least 10 percent of corresponding totals for all governmental or enterprise funds and at least 5 percent of the aggregate amount for all governmental and enterprise funds.
What is net position?
Net position. The value of the position subtracting the initial cost of setting up the position. For example, if 100 options where purchased for $1 each and the option is currently trading for $9, the value of the net position is $900 – $100 = $800.
What is net position in governmental accounting?
Net position in the balance sheet (or statement of net position) of a local and state government is the difference between total assets plus deferred outflows of resources, and total liabilities plus deferred inflows of resources.
Is accrued revenue an asset?
Accrued revenue is an asset, but it’s not as valuable an asset as cash. That’s because it takes the effort of billing and collecting from the customer to transform accrued revenue into cash.
