Governments should report the net pension liability in the governmental fund basis statements even if it is not expected to be paid from current financial resources.

Question

Quizplus · Accepted Answer

The net pension liability is the amount that a government anticipates paying to current employees in the future in excess of the resources currently accumulated for that purpose. The government-wide Statement of Net Position reports the net pension liability for employees engaged in governmental and business-type activities. The General and other governmental funds do not recognize long-term obligations. Governmental funds should report a liability for pensions in the fund-basis statements only to the extent the liability is expected to be paid with current financial resources.

Governments Should Report the Net Pension Liability in the Governmental