•Do not affect the timing of
recognition of nonexchange transactions
•Must
report the net assets as restricted
Net assets must
continue to be reported as restricted until
1)resources are used for their specified
purpose
2)as long as the provider requires the
resources to be maintained intact (endowment principal)
If eligibility
requirements or purpose restrictions which are initially met are later
violated, must reverse the amount that the provider is expected to reclaim.