A balance sheet of Brown University, issued prior to the effective date of FASB Statement No. 117, is presented below — Recast fund net asset section that presents balances three

A balance sheet of Brown University, issued prior to the effective date of FASB Statement No. 117, is presented below.

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Recast the fund balance (net asset) section of the balance sheet so that it presents the fund balances in the three categories required by Statement No. 117. Show the balances in a single column, divided into three sections. Thus, current undesignated funds should be reported in the unrestricted section; current restricted funds in the temporarily restricted section. Assume that the plant funds, other than the net investment in plant, are donor restricted and make other appropriate assumptions as to the type of restriction that applies to each of the other fund balances.

SOLUTION:

Brown University

Statement of Financial Position as of June 30

(in thousands)

Fund Balances

Unrestricted

Designated $ 20,445

Unrestricted quasi-endowment 59,644

Net investment in plant 115,089