FASB requires external financial reports to provide information about
A)Donor-imposed restrictions on resources.
B)All restrictions on resources.
C)Donor and creditor restrictions on resources.
D)None of the above.

Question

Quizplus · Accepted Answer

FASB requires external financial reports to disclose information about donor-imposed restrictions on resources. This is because these restrictions can impact how the resources are used and affect the organization's financial position and performance. All restrictions on resources may not be relevant or material to the financial statements, so FASB only requires disclosure of donor-imposed restrictions.

FASB Requires External Financial Reports to Provide Information About