[misoc23]

The employer net pension liability for the Golf City Fire Department decreased by $200,000 from Year 1 to Year 2 as a result of a change in actuarial assumptions used to value the employer net pension liability. As a result of this change, Golf City will display the following on their Year 2 government-wide financial statements:

a. Note disclosures only

b. Deferred inflows of resources of $200,000

c. Deferred outflows of resources of $200,000

d. Pension Expense of $200,000

Answer is B, but why…I dont understand the concept of it. Please help

[tryef]

deferred inflow and outflow in gov acct is treated like oci in regular acct..
change in actuarial assumption is accounted to oci. if its gain, it goes to credit, which reduces liability. deferred inflow means simply oci income in regular acct of cource ut decreases liability… i drank a lot.. so dont trust me maybe i am wrong..

FAR-passed 11/29/15
BEC-1/12/16 passed
AUD-2/29/16
REG-

[Author]

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