Abstract:Net assets represent the difference between a not-for-profit organization's assets and liabilities. Generally accepted accounting principles (GAAP) requires the reporting of net assets in three differ...Net assets represent the difference between a not-for-profit organization's assets and liabilities. Generally accepted accounting principles (GAAP) requires the reporting of net assets in three different classes. Net assets are classified based on the presence or absence of donor-imposed restrictions as either unrestricted, temporarily restricted, or permanently restricted. GAAP requires the statement of financial position to report total net assets and the amounts of each of the three classes of net assets. It has additional disclosures that are applicable to all endowments. The statement of activities should report the changes in each net asset class and the total change in net assets. Financial Accounting Standards Board (FASB) ASC 958-205 provides guidance on the net asset classification of donor-restricted endowment funds for a not-for-profit organization that is subject to an enacted version of the Uniform Prudent Management of Institutional Funds Act of 2006 (UPMIFA).Read More
Publication Year: 2018
Publication Date: 2018-06-22
Language: en
Type: other
Indexed In: ['crossref']
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