Under the FASB Codification a $5 million endowment that cannot be spent for 50 years should be classified as net assets with donor restrictions.

Question

Quizplus · Accepted Answer

According to FASB Codification, funds or endowments that have donor-imposed restrictions, such as a restriction on their use for a specific purpose or a specific time period, should be classified as net assets with donor restrictions. Therefore, a $5 million endowment that cannot be spent for 50 years would fall under this category.

Under the FASB Codification a $5 Million Endowment That Cannot