What Is a Restricted Asset?

The net assets required by the non-profit organization's accounting system fall into two categories, namely restricted net assets and unrestricted net assets.

Qualified net assets

Right!

Regarding the limited net assets of civil non-profit organizations, in addition to the above, the following aspects should be noted:

1. Restrictions on net assets generally do not create liabilities. After accepting assets such as donations, a private non-profit organization increased the assets it held while increasing its fiduciary responsibility for management without increasing its liabilities. But these restrictive conditions do restrict private non-profit organizations from using donated assets for purposes other than those specified.

2. All kinds of limited net assets can only occur when the donor clearly specifies the restrictions on the use of certain assets.

3. Restricted net assets do not refer to a specific asset. In most cases, civil non-profit organizations can transfer restricted donated assets and

Private non-profit organizations should set up the subject of "restricted net assets" to account for the limited net assets of private non-profit organizations.

This subject belongs to the category of net assets.

(1) Transfer of limited income to limited net assets at the end of the period

At the end of the period, when private non-profit organizations transferred the balance of the "limited income" detail accounts belonging to each income expense category to the "restricted net assets" account, debited "donation income-limited income", "government subsidy income- "Restricted income" and other subjects, credit "restricted net assets".

Example: A private non-profit organization has a limited donation income of 150,000 yuan and a limited government subsidy income of 350,000 yuan before transferring to net assets on December 31, 2008. The accounting department prepares accounting vouchers based on relevant vouchers and prepares the following accounting entries:

Borrow: donation income-limited income of 150,000

Government subsidy income-limited income 350,000

Loan: Limited net assets of 500,000

(2) Lifting of restrictions on restricted net assets

If the asset provider or relevant national laws and administrative regulations require civil non-profit organizations to use restricted net assets or related assets for specific purposes within a certain period or after a certain date, the restricted net assets shall be within the corresponding period or After the corresponding date, it will be converted into non-restricted net assets based on the actual amount of related assets used or the actual costs of related expenses. Prepare accounting entries debited "restricted net assets" and credited "non-restricted net assets".

Example: A non-governmental non-profit university accepted a donation of 500,000 yuan from Zhongyou Company in December 2002. The funds were used for the purchase of environmental professional equipment newly opened in September 2004. In October 2004, the school donated 350,000 yuan to purchase environmental assessment equipment. The accounting department prepares accounting vouchers based on relevant vouchers and prepares the following accounting entries:

(1) Donations received in 2002:

Borrow: bank deposit 500000

Loan: Donation income-limited income 500,000

(2) Purchase of environmental assessment equipment in 2004:

Borrow: Fixed assets-special equipment 350000

Loan: bank deposit 350000

(3) The donation is partially lifted:

Borrow: Limited net assets of 350,000

Loan: Non-restricted net assets of 350,000

(3) Adjusting income or expenses in previous periods

If a non-governmental non-profit organization involves adjusting the limited net assets due to the adjustment of the income and expense items in the previous period, it shall debit or credit the relevant subjects and credit or debit the "limited net assets" subjects for the amount to be adjusted.

Example: A private non-profit organization discovered in May 2004 that the sales cost of limited donated goods in 2003 was understated by 85,000 yuan, and adjusted. The accounting department prepares accounting vouchers based on relevant vouchers and prepares the following accounting entries:

Borrow: qualified net assets 85000

Credit: Inventory-Inventory goods 85000