
ASU 2020-07 requires new disclosures and presentation for contributed nonfinancial assets (gifts-in-kind) for nonprofit organizations. Here are some FASB examples to...
As mentioned in the Changes to Nonprofit Reporting of Gifts-In-Kind blog, Accounting Standard Update (ASU) No. 2020-07, Not-for-Profit Entities (Topic 958): Presentation and Disclosures by Not-for-Profit Entities for Contributed Nonfinancial Assets, requires new disclosures and presentation for contributed nonfinancial assets for nonprofit organizations. Below, we provide a high-level update on the changes needed and provide links to FASB’s provided examples for reference.
Statement of Activities Presentation:
Under the new ASU, nonprofits are to present contributed nonfinancial assets as a separate line item in the Statement of Activities, separate from contributions of cash and other financial assets.
See examples on PDF pages 11-17 of the new standard.
Footnote Disclosures:
Under the new ASU, nonprofits are to disclose the amount of contributed nonfinancial assets received, disaggregated by category, that depicts the type of contributed nonfinancial assets, as well as the additional information for each category of contributed nonfinancial assets received:
- Qualitative information about whether the contributed nonfinancial assets were monetized or utilized during the reporting period. If utilized, a description of the programs or other activities in which those assets were used
- The nonprofits policy (if any) about monetizing rather than utilizing contributed nonfinancial assets
- A description of any donor-imposed restrictions
- A description of the valuation techniques and inputs used to arrive at fair value at initial recognition
- The principal or most advantageous market used to arrive at a fair value measure if it is a market in which the recipient nonprofit is prohibited by a donor-imposed restriction from selling or using the contributed nonfinancial asset
See examples on PDF pages 17-23 of the new standard.
How We Can Help:
CLA’s nonprofit professionals are here to help you. Through collaboration, we can provide the guidance you need to have a smooth and successful adoption of this standard.
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