{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/210/958/#55-implementation-guidance-and-illustrations","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":"55","label":"55 Implementation Guidance and Illustrations","anchor":"55-implementation-guidance-and-illustrations","is_sec":false,"groups":[{"block":null,"heading":"Illustrations","paragraphs":[{"citation":"210-958-55-1","para":"55-1","html":"<div class=\"asc-body\"><div class=\"norm-text\">This Section, which is an integral part of the requirements of this Subtopic, provides general guidance to be used in the presentation of a statement of financial position by a <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 entity</span></a> (NFP).</div></div>","snippet":"This Section, which is an integral part of the requirements of this Subtopic, provides general guidance to be used in the presentation of a statement of financial position by a not-for-profit entity (NFP).","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:20e03436e76ed035c86fdd27c29291957ba158d5f07341a3d716c274e6d2640d","downloaded_from":"2026-09-09T23:02:40.115Z","last_downloaded_at":"2026-09-09T23:02:40.115Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477874","source_sha256":"600f49eeece1e76a18ce298f47811d1c3faee86f8006adcfbc70e30db73f14ce"}},{"citation":"210-958-55-2","para":"55-2","html":"<div class=\"asc-body\"><div class=\"norm-text\">In addition to the following Examples, guidance in paragraph <a href=\"/asc/205/958/#205-958-55-7\" class=\"xref\">958-205-55-7</a> illustrates a statement of financial position and paragraph <a href=\"/asc/205/958/#205-958-55-5\" class=\"xref\">958-205-55-5</a> provides the facts and transactions that are reflected in that illustrative statement.</div></div>","snippet":"In addition to the following Examples, guidance in paragraph 958-205-55-7 illustrates a statement of financial position and paragraph 958-205-55-5 provides the facts and transactions that are reflected in that illustrati…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:7fca8dd507cfee5cf0be0a24ed59fb7c04df8d1004a20bc255e14c52b534b4d0","downloaded_from":"2026-09-09T23:02:40.115Z","last_downloaded_at":"2026-09-09T23:02:40.115Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477874","source_sha256":"600f49eeece1e76a18ce298f47811d1c3faee86f8006adcfbc70e30db73f14ce"}},{"citation":"210-958-55-3","para":"55-3","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_3035B6A4-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">As illustrated in paragraph <a href=\"/asc/205/958/#205-958-55-9\" class=\"xref\">958-205-55-9</a>, this Subtopic encourages the use of the terms <a href=\"/glossary/n/#net-assets-with-donor-restrictions\" class=\"term\" title=\"The part of net assets of a not-for-profit entity that is subject to donor-imposed restrictions (donors include other types of contributors, including makers of certain grants).\"><span>net assets with donor restrictions</span></a> and <a href=\"/glossary/n/#net-assets-without-donor-restrictions\" class=\"term\" title=\"The part of net assets of a not-for-profit entity that is not subject to donor-imposed restrictions (donors include other types of contributors, including makers of certain grants).\"><span>net assets without donor restrictions</span></a>; however, other labels exist. For example, equity may be used for net assets, and other or not donor-restricted may be used with care to distinguish net assets with donor restrictions from net assets without donor restrictions. For example, the net asset section might be arranged as follows. </span></span><ul class=\"ul simple\" id=\"d3e91129-112874__GUID-31488CA4-CAFB-4D21-B2F5-62858D2B0ABB\"><li class=\"li\" id=\"d3e91129-112874__SL86049130-112874\"><div class=\"p\"><div class=\"fig figure fignone\"><img src=\"/asc-img/GUID-215365E5-73EA-4880-BF24-FE0056D42D59-low.gif\" altsource=\"GUID-215365E5-73EA-4880-BF24-FE0056D42D59-low.gif\" loading=\"lazy\"><span class=\"sfragment\" id=\"sfr_3035BBA5-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\"></span></span><div class=\"figcaption\">With donor restrictions: Perpetual in nature $XXX Purpose restricted XXX \"Time-restricted only, for periods after 20X1\" XXX XXX Without donor restrictions: Designated by the Board for [ purpose] $XXX Undesignated XXX XXX Net assets $XXX </div></div></div></li></ul></div></div>","snippet":"As illustrated in paragraph 958-205-55-9, this Subtopic encourages the use of the terms net assets with donor restrictions and net assets without donor restrictions; however, other labels exist. For example, equity may b…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:7c06b7287e673d56607028ecdf025e2454e6d5e0af3324b82b6d838d5d75e0e3","downloaded_from":"2026-09-09T23:02:40.115Z","last_downloaded_at":"2026-09-09T23:02:40.115Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477874","source_sha256":"600f49eeece1e76a18ce298f47811d1c3faee86f8006adcfbc70e30db73f14ce"}},{"citation":"210-958-55-4","para":"55-4","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_3035BD2E-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">At a minimum, paragraph <a href=\"/asc/210/958/#210-958-45-1\" class=\"xref\">958-210-45-1</a> requires that the amounts for each of the two classes of net assets—net assets with donor restrictions and net assets without donor restrictions—and the total of net assets be reported in a statement of financial position. The captions used to describe those amounts must correspond with their meanings. </span></span></div></div>","snippet":"At a minimum, paragraph 958-210-45-1 requires that the amounts for each of the two classes of net assets—net assets with donor restrictions and net assets without donor restrictions—and the total of net assets be reporte…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:25dfce41875f00c4f0711259f621bfbfaf47ce4d42089138aa4b6aa12de2d43b","downloaded_from":"2026-09-09T23:02:40.115Z","last_downloaded_at":"2026-09-09T23:02:40.115Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477874","source_sha256":"600f49eeece1e76a18ce298f47811d1c3faee86f8006adcfbc70e30db73f14ce"}},{"citation":"210-958-55-5","para":"55-5","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_3035BE8F-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">This Example illustrates disclosures on liquidity and availability of an NFP's financial assets as required by paragraph <a href=\"/asc/210/958/#210-958-50-1A\" class=\"xref\">958-210-50-1A</a>. It provides two possible methods to meet the disclosure requirements, but there may be other ways for an NFP to meet the requirements. In this Example, Not-for-Profit Entity A (NFP A) has combined the disclosures about availability of its financial assets and liquidity into one note; however, these disclosures also may be presented in separate notes. Note G in paragraph <a href=\"/asc/205/958/#205-958-55-21\" class=\"xref\">958-205-55-21</a> provides an additional example of the disclosures on liquidity and availability of an NFP's financial assets.</span></span></div></div>","snippet":"This Example illustrates disclosures on liquidity and availability of an NFP's financial assets as required by paragraph 958-210-50-1A. It provides two possible methods to meet the disclosure requirements, but there may …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:dc8a75da3685990087a70e0876356aba2c719e5bffaf7788c1f8a0e431aae40a","downloaded_from":"2026-09-09T23:02:40.115Z","last_downloaded_at":"2026-09-09T23:02:40.115Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477874","source_sha256":"600f49eeece1e76a18ce298f47811d1c3faee86f8006adcfbc70e30db73f14ce"}},{"citation":"210-958-55-6","para":"55-6","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_3035BFD2-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The following is a statement of financial position and example disclosure for NFP A.</span></span><ul class=\"ul simple\" id=\"SL84243162-112874__GUID-B2793A69-B01B-43D1-A157-E9553D6A0181\"><li class=\"li\" id=\"SL84243162-112874__SL86049134-112874\"><div class=\"p\"><div class=\"fig figure fignone\"><img src=\"/asc-img/GUID-D141D425-DA0C-49F0-95ED-ABAA6D97D506-low.gif\" altsource=\"GUID-D141D425-DA0C-49F0-95ED-ABAA6D97D506-low.gif\" loading=\"lazy\"><span class=\"sfragment\" id=\"sfr_3035C41D-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\"></span></span><div class=\"figcaption\">Not-for-Profit Entity A Statements of Financial Position \" June 30, 20X1\" (in thousands) 20X1 Assets: Cash \" $75,000 \" Contributions receivable \" 20,000 \" Prepaid expenses \" 5,000 \" Short-term investments \" 300,000 \" Total assets \" $400,000 \" Liabilities: Accounts payable \" $80,000 \" Total liabilities \" 80,000 \" Net assets: Without donor restrictions \" 300,000 \" With donor restrictions \" 20,000 \" Total net assets \" 320,000 \" Total liabilities and net assets \" $400,000 \" </div></div></div></li></ul></div></div>","snippet":"The following is a statement of financial position and example disclosure for NFP A.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:04b9f590261ddee29d623fb0b4ace63fd4a0a87503ab9dc1d822853ff1e6cba5","downloaded_from":"2026-09-09T23:02:40.115Z","last_downloaded_at":"2026-09-09T23:02:40.115Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477874","source_sha256":"600f49eeece1e76a18ce298f47811d1c3faee86f8006adcfbc70e30db73f14ce"}},{"citation":"210-958-55-7","para":"55-7","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_3035C56B-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">NFP A has $395,000 of financial assets available within 1 year of the balance sheet date to meet cash needs for general expenditure consisting of cash of $75,000, contributions receivable of $20,000, and short-term investments of $300,000. None of the financial assets are subject to donor or other contractual restrictions that make them unavailable for general expenditure within one year of the balance sheet date. The contributions receivable are subject to implied time restrictions but are expected to be collected within one year. NFP A has a goal to maintain financial assets, which consist of cash and short-term investments, on hand to meet 60 days of normal operating expenses, which are, on average, approximately $275,000. NFP A has a policy to structure its financial assets to be available as its general expenditures, liabilities, and other obligations come due. In addition, as part of its liquidity management, NFP A invests cash in excess of daily requirements in various short-term investments, including certificate of deposits and short-term treasury instruments. As more fully described in Note XX, NFP A also has committed lines of credit in the amount of $20,000, which it could draw upon in the event of an unanticipated liquidity need. </span></span></div></div>","snippet":"NFP A has $395,000 of financial assets available within 1 year of the balance sheet date to meet cash needs for general expenditure consisting of cash of $75,000, contributions receivable of $20,000, and short-term inves…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e6fcd5674a0b27b0601b426d54e95e72a6411704ca4d7d065c52c830435d6a34","downloaded_from":"2026-09-09T23:02:40.115Z","last_downloaded_at":"2026-09-09T23:02:40.115Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477874","source_sha256":"600f49eeece1e76a18ce298f47811d1c3faee86f8006adcfbc70e30db73f14ce"}},{"citation":"210-958-55-8","para":"55-8","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_3035C6A7-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">NFP A presents a classified statement of financial position with additional qualitative information about availability of resources and liquidity in Note T. </span></span><ul class=\"ul simple\" id=\"SL84243167-112874__GUID-B7903E34-F452-4D92-9293-F1F1E52D468F\"><li class=\"li\" id=\"SL84243167-112874__SL86049135-112874\"><div class=\"p\"><div class=\"fig figure fignone\"><img src=\"/asc-img/GUID-EE85A81C-3965-4004-95D7-DD329E5FB6F6-low.gif\" altsource=\"GUID-EE85A81C-3965-4004-95D7-DD329E5FB6F6-low.gif\" loading=\"lazy\"><span class=\"sfragment\" id=\"sfr_3035CAA4-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\"></span></span><div class=\"figcaption\">Not-for-Profit Entity A Statements of Financial Position \" June 30, 20X1 and 20X0\" (in thousands) 20X1 20X0 Assets: Current assets Cash and cash equivalents \" $4,575 \" \" $4,960 \" Accounts and interest receivable \" 2,130 \" \" 1,670 \" Inventories and prepaid expenses 610 \" 1,000 \" Contributions receivable \" 1,825 \" \" 1,200 \" Short-term investments \" 1,400 \" \" 1,000 \" Long-term investments appropriated for current use \" 10,804 \" \" 10,075 \" Total current assets \" 21,344 \" \" 19,905 \" Noncurrent assets Contributions receivable \" 1,200 \" \" 1,500 \" \"Assets restricted to investment in land, buildings, and equipment\" \" 5,210 \" \" 4,560 \" \"Land, buildings, and equipment\" \" 61,700 \" \" 63,590 \" \"Long-term investments, net of amounts appropriated\" \" 207,266 \" \" 193,425 \" Total noncurrent assets \" 275,376 \" \" 263,075 \" Total assets \" $296,720 \" \" $282,980 \" Liabilities and net assets: Current liabilities Accounts payable \" $2,570 \" \" $1,050 \" Refundable advance 550 Grants payable 550 600 Notes payable 140 Annuity trust obligations 985 \" 1,050 \" Total current liabilities \" 4,105 \" \" 3,390 \" Noncurrent liabilities Refundable advance 100 Grants payable 325 700 Notes payable \" 1,000 \" Annuity obligations 700 650 Long-term debt \" 5,500 \" \" 6,500 \" Total noncurrent liabilities \" 6,525 \" \" 8,950 \" Total liabilities \" 10,630 \" \" 12,340 \" Net assets: Without donor restrictions \"92,677\" \"73,619\" With donor restrictions \"193,413\" \"197,021\" Total net assets \"286,090\" \"270,640\" Total liabilities and net assets \" $296,720 \" \" $282,980 \" </div></div></div></li><li class=\"li\" id=\"SL84243167-112874__SL86049136-112874\"><div class=\"p\">Note T</div></li><li class=\"li\" id=\"SL84243167-112874__SL86049137-112874\"><div class=\"p\">NFP A's financial assets available within one year of the balance sheet date for general expenditure are as follows.</div><ul class=\"ul simple\" id=\"SL84243167-112874__GUID-F2F4E891-FE59-43FC-9BCA-771D722A0D42\"><li class=\"li\" id=\"SL84243167-112874__SL86049138-112874\"><div class=\"p\"><div class=\"fig figure fignone\"><img src=\"/asc-img/GUID-D98D64C7-A95C-4D25-8746-FF87C5B7E612-low.gif\" altsource=\"GUID-D98D64C7-A95C-4D25-8746-FF87C5B7E612-low.gif\" loading=\"lazy\"><span class=\"sfragment\" id=\"sfr_3035CE91-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\"></span></span><div class=\"figcaption\">Cash and cash equivalents \" $4,575 \" Accounts and interest receivable \" 2,130 \" Contributions receivable \" 1,825 \" Short-term investments \" 1,400 \" Other investments appropriated for current use \" 10,804 \" \" $20,734 \" </div></div></div></li></ul></li><li class=\"li\" id=\"SL84243167-112874__SL86049139-112874\"><div class=\"p\"><span class=\"sfragment\" id=\"sfr_3035CFF4-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">NFP A's endowment funds consist of donor-restricted endowments and a quasi-endowment. Income from donor-restricted endowments is restricted for specific purposes and, therefore, is not available for general expenditure. As described in Note Y, the quasi-endowment has a spending rate of 5 percent. $1.65 million of appropriations from the quasi-endowment will be available within the next 12 months. </span></span></div></li><li class=\"li\" id=\"SL84243167-112874__SL86049140-112874\"><div class=\"p\"><span class=\"sfragment\" id=\"sfr_3035D11B-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">As part of NFP A's liquidity management, it has a policy to structure its financial assets to be available as its general expenditures, liabilities, and other obligations come due. In addition, NFP A invests cash in excess of daily requirements in short-term investments. To help manage unanticipated liquidity needs, NFP A has committed lines of credit in the amount of $20 million, which it could draw upon. Additionally, NFP A has a quasi-endowment of $33 million. Although NFP A does not intend to spend from its quasi-endowment other than amounts appropriated for general expenditure as part of its annual budget approval and appropriation process, amounts from its quasi-endowment could be made available if necessary. However, both the quasi-endowment and donor-restricted endowments contain investments with lock-up provisions that would reduce the total investments that could be made available (see Note X for disclosures about investments). </span></span></div></li></ul></div></div>","snippet":"NFP A presents a classified statement of financial position with additional qualitative information about availability of resources and liquidity in Note T.\nNote T\nNFP A's financial assets available within one year of th…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:25f13cb249165ec9f9c0ae1ab8867f56ea395b13a04da8029ed24b254df379c3","downloaded_from":"2026-09-09T23:02:40.115Z","last_downloaded_at":"2026-09-09T23:02:40.115Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477874","source_sha256":"600f49eeece1e76a18ce298f47811d1c3faee86f8006adcfbc70e30db73f14ce"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:3aa80d0b741a7c86ca978612121c7d9a9494be1065150d5013aa518f5780e4e3","downloaded_from":"2026-09-09T23:02:40.115Z","last_downloaded_at":"2026-09-09T23:02:40.115Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477874","source_sha256":"600f49eeece1e76a18ce298f47811d1c3faee86f8006adcfbc70e30db73f14ce"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b3c01ee5820dc40146f4b1e4448bd7d55050520693fbc0ee2f78b78f86a2ff9c","downloaded_from":"2026-09-09T23:02:40.115Z","last_downloaded_at":"2026-09-09T23:02:40.115Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477874","source_sha256":"600f49eeece1e76a18ce298f47811d1c3faee86f8006adcfbc70e30db73f14ce"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b3c01ee5820dc40146f4b1e4448bd7d55050520693fbc0ee2f78b78f86a2ff9c","downloaded_from":"2026-09-09T23:02:40.115Z","last_downloaded_at":"2026-09-09T23:02:40.115Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477874","source_sha256":"600f49eeece1e76a18ce298f47811d1c3faee86f8006adcfbc70e30db73f14ce"}}