What Is Restricted Net Assets?
The net assets stipulated by the NPOs accounting system are divided into two categories, namely, restricted net assets and non limit Net assets.
Limited net assets refer to nonprofit organizations.
Resources
Set up by the supplier or the relevant laws and administrative regulations of the state for the use of the economic benefits arising from assets or assets.
time
Restrictions or / or use restrictions.
Time constraints require that resources be used only after a specified time or specified date. The use limit requires resources to be used for specific purposes.
If a donation organization donated 500000 yuan to the local nonprofit hospitals in 2009, it was required that the hospital could only be used for specific purposes after 2010.
It can be seen that donors set a time limit for the hospital to use this donation at any time.
If donors donate funds to support the development of medical technology for the elderly in non-profit hospitals, the funds can only be used for the purchase of medical equipment.
In this way, the donor set limits on how the hospital used the donation. There is something in common with the limitation of time and use, that is, as time goes by, or because of the behavior of the donor organization, the constraints can be met; and the donated assets can be used. These restrictions are temporary. Once the conditions are satisfied, the restrictions disappear.
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