Liabilities · Current Liabilities
2020 Unearned / Deferred Revenue
Since 2026.03
- What it is
- Unearned/deferred revenue represents amounts received before the related eligibility requirements are met or before the revenue is earned (for proprietary/government‑wide reporting).
- Accounting standard
- Amounts received in advance are reported as a liability until the underlying earning process or eligibility requirements are satisfied. In governmental reporting, certain items may be reported as deferred inflows rather than liabilities depending on the specific guidance and timing of recognition.
- Accounting note
- Track by revenue source and period. Ensure correct classification between ‘received in advance’ vs ‘measurable but not available’ (which may be deferred inflow in governmental funds). Document policy.
- Reporting note
- This code supports balance‑sheet presentation. Related revenue recognition is recorded in 3000–3999 when earned/available. For governmental statements, evaluate whether the item is a deferred inflow rather than a liability.
- Examples
- Permit or rental payments received for future period; prepaid service contracts billed in advance; advance grant payments before eligibility met.
- Do not use for
- Accounts payable (2000); deposits that are refundable (often use local-detail liability within 2040–2099).
Where it reports on the Cities FTR
| Fund type | FTR line |
|---|---|
| Governmental funds | Form 37 R25 Deposits AdvancesGEN_DEPOSIT_ADV Column for the fund's type (general, special revenue, capital projects, debt service, permanent). Unearned revenue reports with deposits and advances. |
| Government-wide ledger (980) | Not reported. Current liabilities of governmental activities are not reported on form 40. |
| Enterprise funds (water example) | Form 38 R37 Deposits and AdvancesENT_DEPOSIT_ADV Enterprise or internal service column. |
| Internal service funds | Form 38 R37 Deposits and AdvancesINT_SERV_DEPOSIT_ADV Enterprise or internal service column. |
| Fiduciary funds (pension trust example) | Form 39 R23 Deposits AdvancesPEN_OTHER_EE_BEN_TRUST_DEPOSIT_ADV Column for the trust or custodial fund type. |
Enterprise placement is shown for a water fund; other enterprise funds use the same line on their own form. Check any combination in the FTR finder.