What does deferred outflow of resources mean on the CPA exam?
Deferred outflow of resources. A consumption of net assets that belongs to a future period. The mirror of a deferred inflow, and reported between assets and liabilities.
Defined against GASB Concepts Statement 4.
Which CPA exam sections use deferred outflow of resources?
Deferred outflow of resources appears in the BAR section of the CPA exam.
Related terms
- deferred inflow of resources: An acquisition of net assets that belongs to a future period, so it sits between liabilities and equity on a government's statement of net position rather than in either.
- temporary difference: A difference between the tax basis of an asset or liability and its reported amount that will produce taxable or deductible amounts in future years.
- net assets: Assets less liabilities.
- net position: A government's assets plus deferred outflows, less liabilities and deferred inflows.
- deferred tax liability: The deferred tax consequences of taxable temporary differences: income already in the books that the return has not taxed yet, or a deduction taken on the return ahead of the books.
- deferred tax asset: A future tax saving created when an item is deducted for accounting before it is deducted for tax, or when a loss can be carried forward.