Chapter 8 Section 3: Deferred Outflows and Inflows of Resources Flashcards
1
Q
Define deferred inflows and outflows of resources
A
Deferred outflow is a consumption of assets applicable to a future period. It has a positive effect on net position
Deferred inflow is an acquisition of assets applicable to a future period. It has a negative effect on net position
2
Q
How are derivatives reported?
A
Fair value
3
Q
How are changes in the value of derivatives handled?
A
If they’re used for investing, they’re displayed in investment revenue
If they’re used for hedging, they’re displayed as deferred inflows/outflows
4
Q
How does a change in a gov’t pension liability get reported?
A
Either expense it if it’s due to SIR, or use deferred inflows/outflows if it’s due to AGE (like AOCI)
