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FASB Statement Classification Assets

What are the three classifications of net assets established by FASB Statement 117?

How are these net assets affected by the existence or absence of donor-imposed restrictions?

How are releases of these net assets accomplished?

response is 401 words

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The three classifications of net assets established by FASB statement 117 are: permanently restricted net assets temporarily restricted net assets and unrestricted net assets (www.fasb.org).

These nets assets are affected by the existence or absence of donor-imposed restrictions by:
1. The permanently restricted net assets are effected by the existence of donor-imposed restrictions because these net assets are for a not for profit organization from contributions or other types of inflow assets whose use by the organization is limited by donor-imposed restrictions that do not expire by time nor by fulfillment or removed by actions of the organization ...

Solution Summary

The three classifications of net assets established by FASB is examined. How these net assets affected by the existence or absense of donar-imposed restrictions are examined.

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