FASB alters not-for-profit accounting rules for gifts-in-kind
Not-for-profits will be required to provide additional information on the contributions of nonfinancial assets they receive under a new accounting standard issued Thursday by FASB.
Also known as gifts-in-kind, contributed nonfinancial assets can 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 recognized contributed services.
The new Accounting Standards Update (ASU) requires a not-for-profit to present contributed nonfinancial assets as a separate line item in the statement of activities, apart from contributions of cash or other financial assets. The standard also requires a not-for-profit to disclose contributed nonfinancial assets recognized within the statement of activities, disaggregated by category that depicts the type of nonfinancial assets.
For each category of contributed nonfinancial assets recognized, the standard requires a not-for-profit to disclose: