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.

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