Do conventional financial statements satisfy the objectives of financial reporting? The financial statements that follow were adapted from those of the University of Arizona. Both the state- ment of changes in fund balances and the notes to the statements have been omitted. Moreover, the statements show only the combined "totals" columns, whereas the actual statements are multicolumned, indicating the var- ious restrictions placed upon the university's resources. Also, a few of the line items have been aggregated, and the dates have been changed. The University of Arizona Balance Sheet, as of June 30 (in millions) Assets Cash and investments Donated land Notes and accounts receivable (net of allowances for uncollectibles) Inventories and supplies Physical properties Total assets Liabilities and net assets Accounts payable Accrued payroll Deferred revenue and deposits Funds held for others Capitalized lease obligations Bonds payable Total liabilities Net assets 2015 2014 $ 145 $ 145 3 3 52 47 8 8 995 945 $1,203 $1,148 $ 16 $ 17 12 10 9 8 11 36 33 83 241 243 $325 $ 319 $ 878 $ 829