FASB ASC 958 – Not for Profit Entities
The Financial Accounting Standards Board (FASB) released Accounting Standards Codification 958 (ASC 958) to address broad information related to the not-for-profit sector. Non-profit entities have specific guidance within the code that need to be addressed in order to comply with the industry standards.
- Churches and religious organizations
- Universities and colleges
- Health care organizations
- Performing arts organizations
- Fraternal and civic organizations
- Fund raising organizations
- Professional and trade organizations
- Social clubs
- Research organizations
FASB ASC 958-605
Standards are in place so that recognition and display of contributions received measured at fair value and recognized in the period the contribution is made. This covers contributions of cash, investments, long lived property, supplies, etc. Also covered is the unconditional promise to give those in the future.
FASB ASC 958-205
Establishes reporting standards for non-profit entities which is a balance sheet, income statement, and statement of cash flows with notes to the financials. Items in net assets and on the income statement must classify those items based on restrictions imposed by donors.
FASB ASC 958-320
This standard relates to the investments held by not for profit organizations as well as their reporting. Holding gains and losses must be disclosed in order to properly display fair value.
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