_____ Under FAS 117, in the absence of donor stipulations, gains recognized on an endowment would be reported in the statement of activities as increases in

Question

_____	Under FAS 117, in the absence of donor stipulations, gains recognized on an endowment would be reported in the statement of activities as increases in

Quizplus · Accepted Answer

Under FAS 117 (now updated to FASB ASC 958), in the absence of donor stipulations, gains recognized on an endowment are reported as increases in unrestricted net assets. This is because there are no donor-imposed restrictions limiting the use of the gains, allowing the organization discretion over their use.

_____ Under FAS 117, in the Absence of Donor Stipulations, Gains