FASB proposes new requirements for NFP gifts-in-kind

Proposals aim to increase transparency over presentation and disclosure of contributed nonfinancial assets by not-for-profit entities.

Applicability

Proposed ASU

• All not-for-profit entities that receive contributed nonfinancial assets

Relevant dates

• Comments due on proposed ASU by April 10, 2020

Key impacts

• Contributed nonfinancial assets would be presented in a separate line item in the statement of activities.
• These contributions would be disaggregated by type in the notes, and the following disclosed for each category:
  • Qualitative information about whether the contributions were or are intended to be monetized or used
  • Description of the programs or other activities in which the contributions were or are intended to be used, if applicable
  • Any donor restrictions 
  • The valuation techniques and inputs, including the principal (or most advantageous market), if significant. 
• The amendments would be applied on a retrospective basis.