Deferred Inflow of Resources
Related terms
Category
GASB 87/96
A deferred inflow of resources is a government accounting concept representing an acquisition of net assets that applies to a future reporting period. Under GASB 87, lessors recognize a deferred inflow of resources at lease commencement, which is reduced systematically over the lease term.
Why it matters
The deferred inflow is the lessor's counterpart to the lessee's lease liability in GASB 87. It represents lease revenue that has not yet been earned and is recognized over the lease term in a systematic and rational manner. This concept is unique to governmental accounting and does not have a direct equivalent in ASC 842 or IFRS 16.
How Arvexi handles this
Arvexi generates deferred inflow recognition schedules for GASB 87 lessor arrangements, ensuring the correct systematic revenue recognition pattern over the lease term.