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What are deferred inflows and outflows in encumbrance accounting?

For deferred outflows of resources, its the consumption of resources that relates to future periods. This is similar to prepaid expense as we’re consuming net assets now and deferring the expense to a future period. 
For deferred inflows of resources, it’s the acquisition of net assets that is applicable to a future period. So for deferred revenue, we receive the cash now but recognize the revenue in a future period. 


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