Statement of Changes in Net Assets (General Reporting Matters)
The Statement of Changes in Net Assets details the change between the current and prior period for net asset balances. Where the organization is using fund accounting, this statement would be replaced with the Statement of Change in Fund Balances. The reason for presenting this statement is that several items that affect net asset or fund balances may not be apparent from a review of the statement of operations. For example, an addition to endowments under the deferral method of accounting, would not appear in the statement of operations but would impact the ending net asset balance.
In some cases, it may be possible to combine the statement of changes in net assets with the statement of operations. However, it is often not be possible to effect this abbreviated presentation and present all required disclosures for the change in the net asset balance.
The statement presented must show the change in: net assets invested in capital assets; endowments; restricted net assets; unrestricted net assets, and total net assets. (4400.41)