Defining Issues | February 2020
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
- 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.