Deferred inflow of resources
In the lessor's perspective, deferred inflow of resources can be seen as revenue from a future period. For example, the acquisition of net assets by the government that applies to a future reporting period (similar to liability). Since the revenue will not be realized in the current accounting period, deferred inflow is usually used for reporting purposes.
Generally, straight line depreciation is calculated for lessee contracts where a fixed amount is deducted every month for the lease period. For lessors, the Lease receivable is calculated. For GASB lessor contracts Deferred inflow of resources is introduced, for which the following values are calculated:
• Deferred inflow at start = Lease receivable + Prepayments - Lease incentives
• Deferred inflow at end = Deferred inflow at start - Deferred revenue
• Deferred revenue = Lease amount - Interest
Postings are created for amounts that are registered as Deferred inflow of resources and Deferred revenue.