Restricted net assets are time-restrictions or (and) use-restrictions placed on the use of assets or economic benefits derived from assets by the provider of the resources of the civic nonprofit organization, or by relevant state laws and administrative regulations. A time restriction requires that the resource can only be used within a specific time or after a specified date, and a use restriction requires that the resource be used for a specific purpose.
For example, a donor organization donates $500,000 to a local private non-profit hospital in 2009, but requires that the hospital can only be used for a specific purpose after 2010. It can be seen that the donor for the hospital when to use this donation set a time limit. If the donor donated funds to support the local private non-profit hospitals to treat the elderly cataract medical technology development, the funds can only be used for the purchase of medical equipment.
In this way, the donor has set a purpose limitation on how the hospital can use the donation. Time and use restrictions have their ****same point, that is, either with the passage of time, or due to the actions of the recipient organization, the restrictions can be met; and donated assets can be spent. These restrictions are temporary in nature and disappear once the stated conditions are met.