OasisLMS

Net assets are the excess or deficiency of assets over liabilities. They are classified into two mutually exclusive classes — net assets with donor restrictions and net assets without donor restrictions — according to the existence or absence of donor-imposed restrictions. All net assets are classified as net assets without donor restrictions, unless they result from contributions whose use is limited by donor-imposed stipulations. This course delves into accounting for these different classes of net assets.

Who Will Benefit

• New accountants interested in the basics of accounting and financial reporting requirements that apply to not-for-profit entities.
• Experienced accountants that are new to the not-for-profit industry or are in need of a refresher on the basics of accounting and financial reporting requirements that apply to not-for-profit entities.

Learning Outcomes

• Recall the definition of donor-imposed restrictions.
• Identify the two classes of net assets.
• Recognize the various ways donor-imposed restrictions may expire.
• Recall how net assets are presented on the financial statements.

Key Topics

• Net assets with donor restrictions
• Net assets without donor restrictions