Question

A government reports “deferred inflows of resources-unavailable revenues” on its general Fund balance sheet. What are deferred inflows of revenues and when are they recorded?

Answer 1

• A deferred inflow of resources do not meet the definition of liability; and has the effect to decrease a government's net position.
• Deferred Inflows of Resources - Unavailable Revenues is reported a in a government general fund balance sheet.
• Deferred inflows of revenues is an acquisition of net assets by government which applies for further reporting period.
• Examples of deferred inflows are deferred revenue and advance collection.
• Deferred inflows of revenues is reported as a different section following the liabilities in the statement of financial position.
• Revenue of a governmental fund which is not yet recognized, because it is not available is known as deferred inflow.
  

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