United States

Proposal: Accounting for contributed nonfinancial assets


The Financial Accounting Standards Board (FASB) recently issued a proposed Accounting Standards Update (ASU), which, if finalized, would require a not-for-profit entity to present contributed nonfinancial assets (i.e., gifts in kind) in the statement of activities as a line item that is separate from contributions of cash or other financial assets. The term nonfinancial asset includes fixed assets, use of fixed assets or utilities, materials and supplies, intangible assets, services and unconditional promises of those assets.

A not-for-profit entity also would be required to disclose contributed nonfinancial assets received disaggregated by category that depicts the type of contributed nonfinancial assets. For each category of contributed nonfinancial asset received, a not-for-profit entity would be required to disclose:

  • Qualitative information about whether the contributed nonfinancial assets were or are intended to be either monetized or utilized during the reporting period and future periods. If utilized, a not-for-profit entity also would be required to disclose a description of the programs or other activities in which those assets were or are intended to be used. 
  • A description of any donor restrictions associated with the contributed nonfinancial assets
  • The valuation techniques and inputs used to arrive at a fair value measure, including the principal market (or most advantageous market) if significant, in accordance with the requirements in Topic 820, “Fair Value Measurement,” of the FASB’s Accounting Standards Codification

The proposed ASU, Not-for-Profit Entities (Topic 958): Presentation and Disclosures by Not-for-Profit Entities for Contributed Nonfinancial Assets, is available for comment until April 10, 2020.

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