Only not-for-profit organizations follow FASB guidelines AND report the equity as unrestricted,temporarily restricted,or permanently restricted.

Question

Quizplus · Accepted Answer

FASB guidelines are applicable to all organizations, but only not-for-profit organizations are required to report their equity as unrestricted, temporarily restricted, or permanently restricted. This is because not-for-profit organizations do not have owners or shareholders and their surplus funds are designated for specific purposes rather than being distributed as profits to owners.

Only Not-For-Profit Organizations Follow FASB Guidelines AND Report the Equity