.png)
Current Restricted Fund. The current restricted fund accounts for assets received from outside sources for a current operating purpose specified by the donor.
The distinguishing feature between unrestricted and restricted funds is whether or not an externally imposed restriction exists. A contribution received by a health agency to conduct nutrition classes is an example of a restricted resource. When donor-restricted contributions are expensed, the restriction is released or reclassified to offset the expense.
Specifically excluded from this fund are contributions of endowments or contributions restricted to the acquisition of plant assets, which are recorded in other appropriate funds.
Some net assets of this fund may be unrestricted; for example, grants, awards, sponsorships, and appropriations have traditionally been recorded in the restricted current fund. These may now be defined as exchange transactions in which the grantor or sponsor expects to receive something of value in return for the grant. All exchange transactions are unrestricted per FASB Statement No.116.
