Donor-imposed restrictions must be clearly reflected in financial statements of not-for-profit organizations.

Question

Quizplus · Accepted Answer

Not-for-profit organizations that prepare financial statements in conformity with FASB standards are required to report net assets in three categories: unrestricted, temporarily restricted, and permanently restricted. GASB standards require that donor imposed restrictions be reflected in the restricted net position category.

Donor-Imposed Restrictions Must Be Clearly Reflected in Financial Statements of Not-For-Profit