net assets are assets owned by the enterprise and can be freely controlled, that is, owners' equity. The net assets of an enterprise refers to the net assets of the enterprise after deducting liabilities. It consists of two parts, one part is the capital invested at the beginning of the enterprise, including the premium part, and the other part is the assets created by the enterprise during its operation, including the assets donated, which belong to the owners' equity.

The net assets of public institutions specifically include public funds, fixed funds, special funds, business balances and operating balances. Among them, the special fund refers to the special-purpose fund set up by institutions according to regulations, mainly including employee welfare fund, medical fund, repair and purchase fund, housing fund and so on.

according to whether the use is limited or not, the net assets with limited use and unrestricted use are divided. The former includes fixed funds and special funds, while the latter includes business funds, etc.

according to the source of formation, the net assets are divided into external injection and internal formation. The former refers to the net assets provided by the state appropriation department and the donor, and the latter refers to the net assets formed by the institutions retained from the income and balance according to regulations, such as special funds.