Net assets definition
/What are Net Assets?
Net assets is defined as the total assets of an entity, minus its total liabilities. The amount of net assets exactly matches the stockholders’ equity of a business. In a nonprofit entity, net assets are subdivided into unrestricted net assets and restricted net assets.
Presentation of Net Assets
Net assets are clearly delineated in the statement of financial position of a nonprofit entity. This line item is highlighted in the following exhibit.