FASB proposes changes to not-for-profits’ reporting of gifts-in-kind
FASB on Monday issued a Proposed Accounting Standards Update (ASU) designed to improve transparency in how not-for-profit organizations present and disclose contributed nonfinancial assets.
Also known as gifts-in-kind, contributed nonfinancial assets include fixed assets such as land, buildings, and equipment; the use of fixed assets or utilities; materials and supplies, such as food, clothing, or pharmaceuticals; intangible assets; and/or recognized contributed services.
The Proposed ASU, Not-for-Profit Entities (Topic 958), would require not-for-profit organizations to present contributed nonfinancial assets as a separate line item in the statement of activities, apart from contributions of cash or other financial assets. It would also require not-for-profits to disclose:
1. Contributed nonfinancial assets received disaggregated by category that depicts the type of contributed nonfinancial assets, and
2. For each category of contributed nonfinancial assets received (as identified in 1):
Comments on the Proposed ASU are due April 10.
— Jeff Drew (Jeff.Drew@aicpa-cima.com) is a JofA senior editor.
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