Assume a government makes a change of assumption that results in an increase in its estimate of the net pension liability. The resulting change in the net pension liability will be recorded as a deferred outflow of resources in the period of the change.

Question

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If a government sponsoring a defined benefit pension plan changes an assumption underlying the measurement of the net pension liability would result in an increase in the net pension liability and a deferred outflow of resources.

Assume a Government Makes a Change of Assumption That Results