{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/210/958/#05-overview-and-background","source":"FASB Accounting Standards Codification, Basic View","usage":"Study and research edition. Verify current requirements with the official source. Summaries, enrichment, and tags are machine-generated study aids. Paragraph html preserves source markup; snippet is abbreviated. Pending content is not necessarily effective.","topic":"210","topic_title":"Balance Sheet","subtopic":"210-958","subtopic_title":"Not-for-Profit Entities","section":{"number":"05","label":"05 Overview and Background","anchor":"05-overview-and-background","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"210-958-05-1","para":"05-1","html":"<div class=\"asc-body\"><div class=\"norm-text\">This Subtopic provides guidance addressing the statement of financial position for <a href=\"/glossary/n/#not-for-profit-entity\" class=\"term\" title=\"An entity that possesses the following characteristics, in varying degrees, that distinguish it from a business entity: Contributions of significant amounts of resources from resource providers who do not expect commensurate or proportionate pecuniary return Operating purposes other than to provide goods or services at a profit Absence of ownership interests like those of business entities. Entities that clearly fall outside this definition include the following: All investor-owned entities Entities that provide dividends, lower costs, or other economic benefits directly and proportionately to their owners, members, or participants, such as mutual insurance entities, credit unions, farm and rural electric cooperatives, and employee benefit plans.\"><span>not-for-profit entities</span></a> (NFPs). A statement of financial position is the financial statement of an NFP that corresponds to the balance sheet of a business entity.</div></div>","snippet":"This Subtopic provides guidance addressing the statement of financial position for not-for-profit entities (NFPs). A statement of financial position is the financial statement of an NFP that corresponds to the balance sh…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:cad5cc473b45fb38a2bc05dde05523fc0c186e1f207392a2d8fb235aa50772e3","downloaded_from":"2026-09-09T23:02:26.497Z","last_downloaded_at":"2026-09-09T23:02:26.497Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477463","source_sha256":"32f40decfc01a969a5db542935bd39130f708f2eeb4b8a38a518c379aac85d68"}},{"citation":"210-958-05-2","para":"05-2","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_2FC7AB51-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The primary purpose of a statement of financial position is to provide relevant information about an NFP's assets, liabilities, and net assets and about their relationships to each other at a moment in time. </span></span><span class=\"sfragment\" id=\"sfr_2FC7AD58-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The information provided in a statement of financial position, used with related disclosures and information in other financial statements, helps donors, members, creditors, and others to assess the following: </span></span><ol class=\"ol-norm\"><li class=\"li-norm\"><span class=\"linum\">a</span><div class=\"p\"><span class=\"sfragment\" id=\"sfr_2FC7AEE0-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The NFP's ability to continue to provide services </span></span></div></li><li class=\"li-norm\"><span class=\"linum\">b</span><div class=\"p\"><span class=\"sfragment\" id=\"sfr_2FC7B034-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The NFP's <a href=\"/glossary/l/#liquidity\" class=\"term\" title=\"An asset's or liability's nearness to cash. Donor-imposed restrictions may influence the liquidity or cash flow patterns of certain assets. For example, a donor stipulation that donated cash be used to acquire land and buildings limits an entity's ability to take effective actions to respond to unexpected opportunities or needs, such as emergency disaster relief. On the other hand, some donor-imposed restrictions have little or no influence on cash flow patterns or an entity's financial flexibility. For example, a gift of cash with a donor stipulation that it be used for emergency-relief efforts has a negligible impact on an entity if emergency relief is one of its major ongoing programs.\"><span>liquidity</span></a>, <a href=\"/glossary/f/#financial-flexibility\" class=\"term\" title=\"The ability of an entity to take effective actions to alter amounts and timing of cash flows so it can respond to unexpected needs and opportunities.\"><span>financial flexibility</span></a>, ability to meet obligations, and needs for external financing. </span></span></div></li></ol></div></div>","snippet":"The primary purpose of a statement of financial position is to provide relevant information about an NFP's assets, liabilities, and net assets and about their relationships to each other at a moment in time. The informat…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:8f16707d1b114b8333f9b2c6aadf5482735f6b5c5ce15e7a2c95d836de5c55e5","downloaded_from":"2026-09-09T23:02:26.497Z","last_downloaded_at":"2026-09-09T23:02:26.497Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477463","source_sha256":"32f40decfc01a969a5db542935bd39130f708f2eeb4b8a38a518c379aac85d68"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b76925fa2f7d5a21f50fc8f218a529f0ce68f6e740eb67a6e35ba827ec755eb7","downloaded_from":"2026-09-09T23:02:26.497Z","last_downloaded_at":"2026-09-09T23:02:26.497Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477463","source_sha256":"32f40decfc01a969a5db542935bd39130f708f2eeb4b8a38a518c379aac85d68"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b9b80c00110e27bc58667e6d8bd800c2eb6ff8fa6231d3c1a3c5b039308c5e2a","downloaded_from":"2026-09-09T23:02:26.497Z","last_downloaded_at":"2026-09-09T23:02:26.497Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477463","source_sha256":"32f40decfc01a969a5db542935bd39130f708f2eeb4b8a38a518c379aac85d68"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b9b80c00110e27bc58667e6d8bd800c2eb6ff8fa6231d3c1a3c5b039308c5e2a","downloaded_from":"2026-09-09T23:02:26.497Z","last_downloaded_at":"2026-09-09T23:02:26.497Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477463","source_sha256":"32f40decfc01a969a5db542935bd39130f708f2eeb4b8a38a518c379aac85d68"}}