# ASC 210-958-55: Balance Sheet — Not-for-Profit Entities — 55 Implementation Guidance and Illustrations Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/210/958/#55-implementation-guidance-and-illustrations) 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. Tables and mathematical or amendment markup are retained as HTML where Markdown would lose structure. Source downloaded (UTC): 2026-09-09T23:02:40.115Z to 2026-09-09T23:02:40.115Z Record version: sha256:b3c01ee5820dc40146f4b1e4448bd7d55050520693fbc0ee2f78b78f86a2ff9c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 210-958-55: 55 Implementation Guidance and Illustrations [Read section](https://asc.understandingaccounting.org/asc/210/958/#55-implementation-guidance-and-illustrations) SEC content: no #### Illustrations ##### [210-958-55-1](https://asc.understandingaccounting.org/asc/210/958/#210-958-55-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:02:40.115Z to 2026-09-09T23:02:40.115Z Record version: sha256:20e03436e76ed035c86fdd27c29291957ba158d5f07341a3d716c274e6d2640d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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](https://asc.understandingaccounting.org/glossary/n/#not-for-profit-entity "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.") (NFP). ##### [210-958-55-2](https://asc.understandingaccounting.org/asc/210/958/#210-958-55-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:02:40.115Z to 2026-09-09T23:02:40.115Z Record version: sha256:7fca8dd507cfee5cf0be0a24ed59fb7c04df8d1004a20bc255e14c52b534b4d0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In addition to the following Examples, guidance in paragraph [958-205-55-7](https://asc.understandingaccounting.org/asc/205/958/#205-958-55-7) illustrates a statement of financial position and paragraph [958-205-55-5](https://asc.understandingaccounting.org/asc/205/958/#205-958-55-5) provides the facts and transactions that are reflected in that illustrative statement. ##### [210-958-55-3](https://asc.understandingaccounting.org/asc/210/958/#210-958-55-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:02:40.115Z to 2026-09-09T23:02:40.115Z Record version: sha256:7c06b7287e673d56607028ecdf025e2454e6d5e0af3324b82b6d838d5d75e0e3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. As illustrated in paragraph [958-205-55-9](https://asc.understandingaccounting.org/asc/205/958/#205-958-55-9), this Subtopic encourages the use of the terms [net assets with donor restrictions](https://asc.understandingaccounting.org/glossary/n/#net-assets-with-donor-restrictions "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).") and [net assets without donor restrictions](https://asc.understandingaccounting.org/glossary/n/#net-assets-without-donor-restrictions "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)."); 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. - ![](https://asc.understandingaccounting.org/asc-img/GUID-215365E5-73EA-4880-BF24-FE0056D42D59-low.gif) 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 ##### [210-958-55-4](https://asc.understandingaccounting.org/asc/210/958/#210-958-55-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:02:40.115Z to 2026-09-09T23:02:40.115Z Record version: sha256:25dfce41875f00c4f0711259f621bfbfaf47ce4d42089138aa4b6aa12de2d43b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. At a minimum, paragraph [958-210-45-1](https://asc.understandingaccounting.org/asc/210/958/#210-958-45-1) 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 reported in a statement of financial position. The captions used to describe those amounts must correspond with their meanings. ##### [210-958-55-5](https://asc.understandingaccounting.org/asc/210/958/#210-958-55-5) Pending content: no Source downloaded (UTC): 2026-09-09T23:02:40.115Z to 2026-09-09T23:02:40.115Z Record version: sha256:dc8a75da3685990087a70e0876356aba2c719e5bffaf7788c1f8a0e431aae40a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Example illustrates disclosures on liquidity and availability of an NFP's financial assets as required by paragraph [958-210-50-1A](https://asc.understandingaccounting.org/asc/210/958/#210-958-50-1A). 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 [958-205-55-21](https://asc.understandingaccounting.org/asc/205/958/#205-958-55-21) provides an additional example of the disclosures on liquidity and availability of an NFP's financial assets. ##### [210-958-55-6](https://asc.understandingaccounting.org/asc/210/958/#210-958-55-6) Pending content: no Source downloaded (UTC): 2026-09-09T23:02:40.115Z to 2026-09-09T23:02:40.115Z Record version: sha256:04b9f590261ddee29d623fb0b4ace63fd4a0a87503ab9dc1d822853ff1e6cba5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following is a statement of financial position and example disclosure for NFP A. - ![](https://asc.understandingaccounting.org/asc-img/GUID-D141D425-DA0C-49F0-95ED-ABAA6D97D506-low.gif) 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 " ##### [210-958-55-7](https://asc.understandingaccounting.org/asc/210/958/#210-958-55-7) Pending content: no Source downloaded (UTC): 2026-09-09T23:02:40.115Z to 2026-09-09T23:02:40.115Z Record version: sha256:e6fcd5674a0b27b0601b426d54e95e72a6411704ca4d7d065c52c830435d6a34 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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. ##### [210-958-55-8](https://asc.understandingaccounting.org/asc/210/958/#210-958-55-8) Pending content: no Source downloaded (UTC): 2026-09-09T23:02:40.115Z to 2026-09-09T23:02:40.115Z Record version: sha256:25f13cb249165ec9f9c0ae1ab8867f56ea395b13a04da8029ed24b254df379c3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. NFP A presents a classified statement of financial position with additional qualitative information about availability of resources and liquidity in Note T. - ![](https://asc.understandingaccounting.org/asc-img/GUID-EE85A81C-3965-4004-95D7-DD329E5FB6F6-low.gif) 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 " - Note T - NFP A's financial assets available within one year of the balance sheet date for general expenditure are as follows. - ![](https://asc.understandingaccounting.org/asc-img/GUID-D98D64C7-A95C-4D25-8746-FF87C5B7E612-low.gif) 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 " - 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. - 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).