When accounting for defined benefit pensions, the net pension liability for employees of governmental activities is:
A) Reported in the government-wide statements.
B) Reported in the governmental fund-basis statements.
C) Both A and B.
D) Neither A nor B.

Question

Quizplus · Accepted Answer

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.

When Accounting for Defined Benefit Pensions, the Net Pension Liability