What is Net pension liability (governments)?
In short
A government that provides defined benefit pensions reports a net pension liability equal to the total pension liability minus the pension plan's fiduciary net position, in the government-wide and proprietary fund statements.
Key takeaways
- Some changes in the liability are deferred as deferred outflows or inflows of resources.
- Governmental funds report only amounts currently due.
- Governments in cost-sharing plans report their proportionate share.
Where it's tested
BAR: Government-Wide Statements & the Annual Comprehensive Financial Report — study notes, a five-minute revision sheet and practice questions.
Practise: 3 questions
Question 1 of 3 · 0 answered
In reconciling total governmental fund balances to net position of governmental activities, which adjustment is required?