Surgent wwwsurgentcpareviewcom changes in net assets

© Surgent •
Changes in Net Assets
• NFPs are required to present the changes for two
classes of net assets on the face of the statement of
activities:
– Change in net assets without donor restrictions
– Change in net assets with d
onor restrictions
• When a donor-imposed restriction is satisfied, a
reclassification is reported in the statement of
activities
N F P S T A T E M E N T O F A C T I V I T I E S

© Surgent •
Reclassifications
Reclassifications of net assets are required if any of
the following hurdles are cleared or added:
• The NFP fulfills the purposes for which the net assets
were restricted
• Donor-imposed restrictions expire
• A donor withdraws, or court action removes, previously
imposed restrictions
N F P S T A T E M E N T O F A C T I V I T I E S

© Surgent •
Statement of Activities Format
Three alternate formats are permitted for the
statement of activities:
• A single column: facilitates comparative financial
statements
• The three columns: without donor restrictions, with
donor restrictions, and total
• Two statements of activities: one showing changes in
net assets without donor restrictions, and one showing
changes in net assets with donor restrictions
N F P S T A T E M E N T O F A C T I V I T I E S

© Surgent •
Sample Statement of Activities
N F P S T A T E M E N T O F A C T I V I T I E S
Statement of Activities
Year Ended September 30, 20X1
Without Donor
Restrictions
With Donor
Restrictions Total
Revenues, gains, and other support:
Contributions $145,368 $56,776 $202,144
Fees 4,546 4,546
Investment return, net 63,181 63,670 126,851
Other 2,026 2,026
Net assets released from restrictions:
Satisfaction of program restrictions 31,058 (31,058)
Expiration of time restrictions 15,012 (15,012)
Total revenues, gains, and other support 261,191 74,376 335,567


© Surgent •
Sample Statement of Activities
(cont.)
N F P S T A T E M E N T O F A C T I V I T I E S
Expenses:
Program Alpha 97,068 97,068
Program Beta 83,012 83,012
Management and general 35,013 35,013
Fundraising 27,884 27,884
Total expenses 242,977 242,977
Change in net assets 18,214 74,376 92,590
Net assets at beginning of year 200,417 300,773 501,190
Net assets at end of year $218,631 $375,149 $593,780

© Surgent •