# ASC 220-958-45: Income Statement—Reporting Comprehensive Income — Not-for-Profit Entities — 45 Other Presentation Matters Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/220/958/#45-other-presentation-matters) 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): 2026-09-09T23:07:28.213Z to 2026-09-09T23:07:28.213Z Record version: sha256:0e59fe121f51dfe7b9f4991e2b5cfde70ca920d1cf0c80bff8853cac220ebda5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 220-958-45: 45 Other Presentation Matters [Read section](https://asc.understandingaccounting.org/asc/220/958/#45-other-presentation-matters) SEC content: no #### Totals and Format ##### [220-958-45-1](https://asc.understandingaccounting.org/asc/220/958/#220-958-45-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:07:28.213Z to 2026-09-09T23:07:28.213Z Record version: sha256:9fbb035aaf3ac7b200dabdf31377bba23863cd9757dbb9212cc8c75e559965b2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A statement of activities provided 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) shall focus on the entity as a whole and shall report the following amounts for the period: 1. a The change in [net assets](https://asc.understandingaccounting.org/glossary/n/#net-assets "The excess or deficiency of assets over liabilities of a not-for-profit entity, which is divided into two mutually exclusive classes according to the existence or absence of donor-imposed restrictions. See Net Assets with Donor Restrictions and Net Assets without Donor Restrictions.") 2. b The change in [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).") 3. c The change in [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).") 4. d [Subparagraph superseded by Accounting Standards Update No. 2016-14](https://asc.understandingaccounting.org/updates/asu-2016-14/). ##### [220-958-45-2](https://asc.understandingaccounting.org/asc/220/958/#220-958-45-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:07:28.213Z to 2026-09-09T23:07:28.213Z Record version: sha256:2fd05a31764e821be7f9ffed4c43275f9b1c7d9f4732965ed2e7afa87d0f0045 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The change in net assets shall articulate to the net assets or equity reported in the statement of financial position and it shall be referred to using a descriptive term such as change in net assets or change in equity. ##### [220-958-45-3](https://asc.understandingaccounting.org/asc/220/958/#220-958-45-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:07:28.213Z to 2026-09-09T23:07:28.213Z Record version: sha256:ba316037029f3d19d0fabafca8a8625b2322b10871ce7655812cab8ccb583eba Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Revenues, expenses, gains, and losses increase or decrease net assets and shall be classified as provided in paragraphs [958-220-45-4 through 45-12](https://asc.understandingaccounting.org/asc/220/958/#220-958-45-4) . [Reclassification of net assets](https://asc.understandingaccounting.org/glossary/r/#reclassification-of-net-assets "Simultaneous increase of one class of net assets and decrease of another. A reclassification of net assets usually results from a donor-imposed restriction (donors include other types of contributors, including makers of certain grants) being satisfied or otherwise lapsing."), such as expirations of [donor-imposed restrictions](https://asc.understandingaccounting.org/glossary/d/#donor-imposed-restriction "A donor stipulation (donors include other types of contributors, including makers of certain grants) that specifies a use for a contributed asset that is more specific than broad limits resulting from the following: The nature of the not-for-profit entity (NFP) The environment in which it operates The purposes specified in its articles of incorporation or bylaws or comparable documents for an unincorporated association. Some donors impose restrictions that are temporary in nature, for example, stipulating that resources be used after a specified date, for particular programs or services, or to acquire buildings or equipment. Other donors impose restrictions that are perpetual in nature, for example, stipulating that resources be maintained in perpetuity. Laws may extend those limits to investment returns from those resources and to other enhancements (diminishments) of those resources. Thus, those laws extend donor-imposed restrictions."), shall be reported as separate items. #### Classification of Revenues, Expenses, Gains, and Losses ##### [220-958-45-4](https://asc.understandingaccounting.org/asc/220/958/#220-958-45-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:07:28.213Z to 2026-09-09T23:07:28.213Z Record version: sha256:1610956e9eb1eadc168d1702b689710ec8c55e1ae01ec0daeb8afb0ea8680dec Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Information about revenues, expenses, gains, losses, and [reclassification of net assets](https://asc.understandingaccounting.org/glossary/r/#reclassification-of-net-assets "Simultaneous increase of one class of net assets and decrease of another. A reclassification of net assets usually results from a donor-imposed restriction (donors include other types of contributors, including makers of certain grants) being satisfied or otherwise lapsing.") generally is provided by aggregating items that possess similar characteristics into reasonably homogeneous groups. ##### [220-958-45-5](https://asc.understandingaccounting.org/asc/220/958/#220-958-45-5) Pending content: no Source downloaded (UTC): 2026-09-09T23:07:28.213Z to 2026-09-09T23:07:28.213Z Record version: sha256:c0915fafe2e5d4abad173b26eed106b7d3ef73f371e3e7948ceb49327e3fdfee Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A statement of activities shall report revenues as increases in [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).") unless the use of the assets received is limited by [donor-imposed restrictions](https://asc.understandingaccounting.org/glossary/d/#donor-imposed-restriction "A donor stipulation (donors include other types of contributors, including makers of certain grants) that specifies a use for a contributed asset that is more specific than broad limits resulting from the following: The nature of the not-for-profit entity (NFP) The environment in which it operates The purposes specified in its articles of incorporation or bylaws or comparable documents for an unincorporated association. Some donors impose restrictions that are temporary in nature, for example, stipulating that resources be used after a specified date, for particular programs or services, or to acquire buildings or equipment. Other donors impose restrictions that are perpetual in nature, for example, stipulating that resources be maintained in perpetuity. Laws may extend those limits to investment returns from those resources and to other enhancements (diminishments) of those resources. Thus, those laws extend donor-imposed restrictions."). For example, fees from rendering services and income from investments generally are without donor restrictions; however, income from donor-restricted perpetual or term endowments generally would increase [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)."). ##### [220-958-45-6](https://asc.understandingaccounting.org/asc/220/958/#220-958-45-6) Pending content: no Source downloaded (UTC): 2026-09-09T23:07:28.213Z to 2026-09-09T23:07:28.213Z Record version: sha256:d159b50a32ddadc6b380cc86f6869e0686bb7f93b649ab285ce2326d3053a2f7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Pursuant to the Contributions Received Subsections of Subtopic 958-605, in the absence of a donor's explicit [stipulation](https://asc.understandingaccounting.org/glossary/s/#stipulation "A statement by a donor that creates a condition or restriction on the use of transferred resources.") or circumstances surrounding the receipt of the [contribution](https://asc.understandingaccounting.org/glossary/c/#contribution "An unconditional transfer of cash or other assets, as well as unconditional promises to give, to an entity or a reduction, settlement, or cancellation of its liabilities in a voluntary nonreciprocal transfer by another entity acting other than as an owner. Those characteristics distinguish contributions from:Exchange transactions, which are reciprocal transfers in which each party receives and sacrifices approximately commensurate valueInvestments by owners and distributions to owners, which are nonreciprocal transfers between an entity and its ownersOther nonreciprocal transfers, such as impositions of taxes or legal judgments, fines, and thefts, which are not voluntary transfers. In a contribution transaction, the resource provider often receives value indirectly by providing a societal benefit although that benefit is not considered to be of commensurate value. In an exchange transaction, the potential public benefits are secondary to the potential direct benefits to the resource provider. The term contribution revenue is used to apply to transactions that are part of the entity's ongoing major or central activities (revenues), or are peripheral or incidental to the entity (gains). See also Inherent Contribution and Conditional Contribution.") that make clear the donor's implicit restriction on use, contributions are reported as revenues or gains without donor restrictions, which increase net assets without donor restrictions. The classification of contributions received as revenues or gains depends on whether the transactions are part of the NFP's ongoing major or central activities (revenues), or are peripheral or incidental to the NFP (gains). Donor-restricted contributions are reported as restricted revenues or gains ([donor-restricted support](https://asc.understandingaccounting.org/glossary/d/#donor-restricted-support "Donor-restricted revenues or gains from contributions that increase net assets with donor restrictions (donors include other types of contributors, including makers of certain grants).")), which increase net assets with donor restrictions. However, donor-restricted contributions whose restrictions are met in the same reporting period may be reported as support in net assets without donor restrictions, provided that an NFP has a similar policy for reporting investment gains and income, reports consistently from period to period, and discloses its accounting policy. ##### [220-958-45-7](https://asc.understandingaccounting.org/asc/220/958/#220-958-45-7) Pending content: no Source downloaded (UTC): 2026-09-09T23:07:28.213Z to 2026-09-09T23:07:28.213Z Record version: sha256:8b606f52b71d2564100b013c75c5851fbd485d2b942c555e714848e22c252718 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A statement of activities shall report expenses as decreases in net assets without donor restrictions, with the exception of investment expenses, which shall be netted against investment return and reported in the net asset class in which the net investment return is reported (see Subtopic 958-720). ##### [220-958-45-8](https://asc.understandingaccounting.org/asc/220/958/#220-958-45-8) Pending content: no Source downloaded (UTC): 2026-09-09T23:07:28.213Z to 2026-09-09T23:07:28.213Z Record version: sha256:92400740e8366082965fd17b064a3535f32146b37a9a86d8ccf9f6205586c49d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A statement of activities shall report gains and losses recognized on investments and other assets (or liabilities) as increases or decreases in net assets without donor restrictions unless their use is restricted by explicit donor stipulations or by law that extends donor restrictions. For example, net gains on investment assets, to the extent recognized in financial statements, are reported as increases in net assets without donor restrictions unless their use is restricted by a donor to a specified purpose or future period or by law that extends donor restrictions. See paragraphs [958-220-45-22 through 45-30](https://asc.understandingaccounting.org/asc/220/958/#220-958-45-22) for additional guidance about reporting investment gains and losses, and paragraphs [958-205-45-13 through 45-13H](https://asc.understandingaccounting.org/asc/205/958/#205-958-45-13) for additional guidance about reporting gains and losses on endowment funds. See paragraph [958-310-45-3](https://asc.understandingaccounting.org/asc/310/958/#310-958-45-3) for additional guidance about bad debt expenses and losses. #### Measure of Operations ##### [220-958-45-9](https://asc.understandingaccounting.org/asc/220/958/#220-958-45-9) Pending content: yes Source downloaded (UTC): 2026-09-09T23:07:28.213Z to 2026-09-09T23:07:28.213Z Record version: sha256:fdd8e4e153fc068570a4cb6ecf29db2553ea67492d8b4230f8a33512fef0c210 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Classifying revenues, expenses, gains, and losses within classes of net assets does not preclude incorporating additional classifications within a statement of activities. For example, within a class or classes of changes in net assets, an NFP may classify items as follows: 1. a Operating and nonoperating 2. b Expendable and nonexpendable 3. c Recognized and unrecognized 4. d Recurring and nonrecurring 5. e In other ways. Transition date:(P) December 16, 2026; (N) December 16, 2026Transition guidance: [105-10-65-10](https://asc.understandingaccounting.org/asc/105/10/#105-10-65-10)Classifying revenues, expenses, gains, and losses within classes of net assets does not preclude incorporating additional classifications within a statement of activities. For example, within a class or classes of changes in net assets, an NFP may classify items as follows: 1. a Operating and nonoperating 2. b Expendable and nonexpendable 3. c [Subparagraph superseded by Accounting Standards Update No. 2025-12.](https://asc.understandingaccounting.org/updates/asu-2025-12/) 4. d Recurring and nonrecurring 5. e In other ways. ##### [220-958-45-10](https://asc.understandingaccounting.org/asc/220/958/#220-958-45-10) Pending content: no Source downloaded (UTC): 2026-09-09T23:07:28.213Z to 2026-09-09T23:07:28.213Z Record version: sha256:c250756a1741f0f8fa4cef13f4fa39a4009c65dd03b4f50e08099a0ad7b648ed Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic neither encourages nor discourages those further classifications. However, because terms such as operating income, operating profit, operating surplus, operating deficit, and results of operations are used with different meanings, if an intermediate measure of operations (for example, excess or deficit of operating revenues over expenses) is reported, it shall be in a financial statement that, at a minimum, reports the change in [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).") for the period. Example 1 (see paragraph [958-220-55-5)](https://asc.understandingaccounting.org/asc/220/958/#220-958-55-5) illustrates a statement of revenues, expenses, and other changes in net assets without donor restrictions that subdivides all transactions and other events and circumstances to make an operating and nonoperating distinction. ##### [220-958-45-11](https://asc.understandingaccounting.org/asc/220/958/#220-958-45-11) Pending content: no Source downloaded (UTC): 2026-09-09T23:07:28.213Z to 2026-09-09T23:07:28.213Z Record version: sha256:1d190db9d665b5c2cb3dc6c69f8c4a0c175a4f0bc36219043e410fb40d19311a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Some limitations on an NFP's use of an intermediate measure of operations are imposed by other Subtopics. If a subtotal such as income from operations is presented, it shall include the following amounts: 1. a An impairment loss recognized for a long-lived asset (asset group) to be held and used, pursuant to paragraph [360-10-45-4](https://asc.understandingaccounting.org/asc/360/10/#360-10-45-4) 2. b Costs associated with an exit or disposal activity that does not involve a discontinued operation, pursuant to paragraph [420-10-45-3](https://asc.understandingaccounting.org/asc/420/10/#420-10-45-3) 3. c A gain or loss recognized on the sale of a long-lived asset ([disposal group](https://asc.understandingaccounting.org/glossary/d/#disposal-group "A disposal group for a long-lived asset or assets to be disposed of by sale or otherwise represents assets to be disposed of together as a group in a single transaction and liabilities directly associated with those assets that will be transferred in the transaction. A disposal group may include a discontinued operation along with other assets and liabilities that are not part of the discontinued operation.")) that is not a component of an entity that qualifies for discontinued operations treatment, as defined in Subtopic 205-20, and pursuant to paragraph [360-10-45-5](https://asc.understandingaccounting.org/asc/360/10/#360-10-45-5). In addition, the subtotal such as income from operations shall exclude the components of net periodic pension cost and net periodic postretirement benefit cost other than the service cost component, pursuant to paragraph [958-715-45-3](https://asc.understandingaccounting.org/asc/715/958/#715-958-45-3). ##### [220-958-45-12](https://asc.understandingaccounting.org/asc/220/958/#220-958-45-12) Pending content: no Source downloaded (UTC): 2026-09-09T23:07:28.213Z to 2026-09-09T23:07:28.213Z Record version: sha256:6a9f132d1596aadc8bc72820b347a7b2c18aebc0c7e6235f9580d7f65eb264f3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Pursuant to paragraph [958-220-50-1](https://asc.understandingaccounting.org/asc/220/958/#220-958-50-1), if an NFP's use of the term _operations_ is not apparent from the details provided on the face of the statement, a note to financial statements shall describe the nature of the reported measure of operations or the items excluded from operations. If an NFP presents internal board designations, appropriations, and similar actions on the face of the financial statements, a note to financial statements shall provide an appropriate disaggregation and description by type of these actions if not provided on the face of the financial statements. #### Reclassifications ##### [220-958-45-13](https://asc.understandingaccounting.org/asc/220/958/#220-958-45-13) Pending content: no Source downloaded (UTC): 2026-09-09T23:07:28.213Z to 2026-09-09T23:07:28.213Z Record version: sha256:0f89d28bbe6097ca82c52e96a7b0b6dd2fae415c6f6e28bb08647fbc0f73dd66 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Reclassifications of net assets](https://asc.understandingaccounting.org/glossary/r/#reclassification-of-net-assets "Simultaneous increase of one class of net assets and decrease of another. A reclassification of net assets usually results from a donor-imposed restriction (donors include other types of contributors, including makers of certain grants) being satisfied or otherwise lapsing.")—that is, simultaneous increases in one net asset class and decreases in another—shall be made if any of the following events occur: 1. a The NFP fulfills the purposes for which the net assets were restricted. 2. b [Donor-imposed restrictions](https://asc.understandingaccounting.org/glossary/d/#donor-imposed-restriction "A donor stipulation (donors include other types of contributors, including makers of certain grants) that specifies a use for a contributed asset that is more specific than broad limits resulting from the following: The nature of the not-for-profit entity (NFP) The environment in which it operates The purposes specified in its articles of incorporation or bylaws or comparable documents for an unincorporated association. Some donors impose restrictions that are temporary in nature, for example, stipulating that resources be used after a specified date, for particular programs or services, or to acquire buildings or equipment. Other donors impose restrictions that are perpetual in nature, for example, stipulating that resources be maintained in perpetuity. Laws may extend those limits to investment returns from those resources and to other enhancements (diminishments) of those resources. Thus, those laws extend donor-imposed restrictions.") expire with the passage of time or with the death of a [split-interest agreement](https://asc.understandingaccounting.org/glossary/s/#split-interest-agreement "An agreement in which a donor enters into a trust or other arrangement under which a not-for-profit entity (NFP) receives benefits that are shared with other beneficiaries. A typical split-interest agreement has the following two components: A lead interest A remainder interest.") beneficiary (if the net assets are not otherwise restricted). 3. c A donor withdraws, or court action removes, previously imposed restrictions. 4. d A donor imposes restrictions on [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)."). For example, a donor may make a restricted [contribution](https://asc.understandingaccounting.org/glossary/c/#contribution "An unconditional transfer of cash or other assets, as well as unconditional promises to give, to an entity or a reduction, settlement, or cancellation of its liabilities in a voluntary nonreciprocal transfer by another entity acting other than as an owner. Those characteristics distinguish contributions from:Exchange transactions, which are reciprocal transfers in which each party receives and sacrifices approximately commensurate valueInvestments by owners and distributions to owners, which are nonreciprocal transfers between an entity and its ownersOther nonreciprocal transfers, such as impositions of taxes or legal judgments, fines, and thefts, which are not voluntary transfers. In a contribution transaction, the resource provider often receives value indirectly by providing a societal benefit although that benefit is not considered to be of commensurate value. In an exchange transaction, the potential public benefits are secondary to the potential direct benefits to the resource provider. The term contribution revenue is used to apply to transactions that are part of the entity's ongoing major or central activities (revenues), or are peripheral or incidental to the entity (gains). See also Inherent Contribution and Conditional Contribution.") that is conditioned on the NFP restricting a stated amount of its net assets without donor restrictions. Such restrictions that are not reversible without donors' consent result in a reclassification of net assets without donor restrictions to [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)."). See paragraphs [958-205-45-9 through 45-12](https://asc.understandingaccounting.org/asc/205/958/#205-958-45-9) for additional information about the expiration of donor-imposed restrictions. #### Gross versus Net Reporting of Amounts ##### [220-958-45-14](https://asc.understandingaccounting.org/asc/220/958/#220-958-45-14) Pending content: no Source downloaded (UTC): 2026-09-09T23:07:28.213Z to 2026-09-09T23:07:28.213Z Record version: sha256:f04521bc78514525678383bf0e652eca4330610e5d4bfa579fc4827e913f07e6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. To help explain the relationships of an NFP's ongoing major or central operations and activities, a statement of activities generally shall report the gross amounts of revenues and expenses. However, investment return (related to total return investing and not [programmatic investing](https://asc.understandingaccounting.org/glossary/p/#programmatic-investing "The activity of making loans or other investments that are directed at carrying out a not-for-profit entity's purpose for existence rather than investing in the general production of income or appreciation of an asset (for example, total return investing). An example of programmatic investing is a loan made to lower-income individuals to promote home ownership.")) shall be reported net of external and direct internal investment expenses. An NFP may present the amounts of net investment return from portfolios that are managed differently or derived from different sources as separate, appropriately labeled line items on the statement of activities. For example, if an NFP has net investment return generated from operating cash, it may present that return separately from net investment return generated from its endowment. In addition, if appropriately labeled, an NFP may present the amounts of net investment return appropriated for spending separate from net investment return in excess of amounts appropriated for spending. ##### [220-958-45-15](https://asc.understandingaccounting.org/asc/220/958/#220-958-45-15) Pending content: no Source downloaded (UTC): 2026-09-09T23:07:28.213Z to 2026-09-09T23:07:28.213Z Record version: sha256:ec96ac654d6fc66e23ff4d35478bac3b689122ed4c19b26596f7618c78461dd4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Direct internal investment expenses involve the direct conduct or direct supervision of the strategic and tactical activities involved in generating investment return. These include, but are not limited to, both of the following: 1. a Salaries, benefits, travel, and other costs associated with the officer and staff responsible for the development and execution of investment strategy 2. b Allocable costs associated with internal investment management and supervising, selecting, and monitoring of external investment management firms. ##### [220-958-45-16](https://asc.understandingaccounting.org/asc/220/958/#220-958-45-16) Pending content: no Source downloaded (UTC): 2026-09-09T23:07:28.213Z to 2026-09-09T23:07:28.213Z Record version: sha256:75e3ab40f33e19b5cce018d7155fc649432dc42248a46f3bf44a4590b658330a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Direct internal investment expenses do not include items that are not associated with generating investment return. For example, the costs associated with unitization and other such aspects of endowment management would not be allocated. ##### [220-958-45-17](https://asc.understandingaccounting.org/asc/220/958/#220-958-45-17) Pending content: no Source downloaded (UTC): 2026-09-09T23:07:28.213Z to 2026-09-09T23:07:28.213Z Record version: sha256:9cf02396facd9a6819bc8eb6e211f1299f71d73225f251ee20b50ba81d2fc054 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A statement of activities may report gains and losses as net amounts if they result from peripheral or incidental transactions or from other events and circumstances that may be largely beyond the control of the NFP and its management. Information about their net amounts generally is adequate to understand the NFP's activities. For example, an entity that sells land and buildings no longer needed for its ongoing activities commonly reports that transaction as a net gain or loss, rather than as gross revenues for the sales value and expense for the carrying value of the land and buildings sold. The net amount of those peripheral transactions, used with information in a statement of cash flows, usually is adequate to help assess how an entity uses its resources and how managers discharge their stewardship responsibilities. ##### [220-958-45-18](https://asc.understandingaccounting.org/asc/220/958/#220-958-45-18) Pending content: no Source downloaded (UTC): 2026-09-09T23:07:28.213Z to 2026-09-09T23:07:28.213Z Record version: sha256:8e7259c67e5ce13b8859cd9a5bed88c060ee8320fcc8b15dbd9de6c31a640b81 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The frequency of the events and the significance of the gross revenues and expenses distinguish major or central events from peripheral or incidental events. Events are ongoing major and central activities if they are normally part of an NFP's strategy and it normally carries on such activities or if the event's gross revenues or expenses are significant in relation to the NFP's annual budget. Events are peripheral or incidental if they are not an integral part of an NFP's usual activities or if their gross revenues or expenses are not significant in relation to the NFP's annual budget. Accordingly, similar events may be reported differently by different NFPs based on the NFP's overall activities. ##### [220-958-45-19](https://asc.understandingaccounting.org/asc/220/958/#220-958-45-19) Pending content: no Source downloaded (UTC): 2026-09-09T23:07:28.213Z to 2026-09-09T23:07:28.213Z Record version: sha256:06493284309f4994be53981608a5d6a9941c6cb87628560dc77a6b76b121fcd6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An NFP may report net amounts for its special events if they result from peripheral or incidental transactions. However, so-called special events can be ongoing and major activities; if so, an NFP shall report the gross revenues and expenses of those activities. Costs netted against receipts from peripheral or incidental special events shall be limited to direct costs. See Example 4 (paragraph [958-220-55-11](https://asc.understandingaccounting.org/asc/220/958/#220-958-55-11)) for three possible methods of complying with this requirement. #### Equity Transfers ##### [220-958-45-20](https://asc.understandingaccounting.org/asc/220/958/#220-958-45-20) Pending content: no Source downloaded (UTC): 2026-09-09T23:07:28.213Z to 2026-09-09T23:07:28.213Z Record version: sha256:373f5b5307e4d149c24fedf71e49f59d885b124f3edb991fb6c907a27e379f21 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Equity transfers](https://asc.understandingaccounting.org/glossary/e/#equity-transfer "An equity transfer is nonreciprocal. An equity transfer is a transaction directly between a transferor and a transferee. Equity transfers are similar to ownership transactions between a for-profit parent and its owned subsidiary (for example, additional paid-in capital or dividends). However, equity transfers can occur only between related not-for-profit entities (NFPs) if one controls the other or both are under common control. An equity transfer embodies no expectation of repayment, nor does the transferor receive anything of immediate economic value (such as a financial interest or ownership).") are reported separately as changes in net assets and do not result in any step-up in basis of the underlying assets transferred. However, a service received from personnel of an [affiliate](https://asc.understandingaccounting.org/glossary/a/#affiliate "A party that, directly or indirectly through one or more intermediaries, controls, is controlled by, or is under common control with an entity. See Control.") that directly benefits the recipient NFP and for which the affiliate does not charge the recipient NFP may be recorded at the fair value of that service in the circumstances indicated in paragraph [958-720-30-3](https://asc.understandingaccounting.org/asc/720/958/#720-958-30-3). Paragraph [958-20-55-2B](https://asc.understandingaccounting.org/asc/958/20/#958-20-55-2B) describes the difference between an equity transfer and an equity transaction. Paragraph [954-220-45-2](https://asc.understandingaccounting.org/asc/220/954/#220-954-45-2) provides additional guidance on the reporting of equity transfers for not-for-profit, business-oriented health care entities. ##### [220-958-45-21](https://asc.understandingaccounting.org/asc/220/958/#220-958-45-21) Pending content: no Source downloaded (UTC): 2026-09-09T23:07:28.213Z to 2026-09-09T23:07:28.213Z Record version: sha256:63ff216edabf3a249323cd6cddc8056bc1e853c5fbd035c49fab5a867dc216d8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The increase in net assets associated with services received from personnel of an affiliate that directly benefit the recipient NFP and for which the affiliate does not charge the recipient NFP shall be reported as an equity transfer, regardless of whether those services are received from personnel of a not-for-profit affiliate or any other affiliate. The corresponding decrease in net assets or the creation or enhancement of an asset resulting from the use of services received from personnel of an affiliate shall be reported similar to how other such expenses or assets are reported. See paragraph [958-720-45-56](https://asc.understandingaccounting.org/asc/720/958/#720-958-45-56) for presentation guidance on services received from personnel of an affiliate. Paragraphs [954-220-45-2 through 45-3](https://asc.understandingaccounting.org/asc/220/954/#220-954-45-2) provide additional guidance for not-for-profit, business-oriented health care entities. #### Reporting Investment Gains, Losses, and Income ##### [220-958-45-22](https://asc.understandingaccounting.org/asc/220/958/#220-958-45-22) Pending content: no Source downloaded (UTC): 2026-09-09T23:07:28.213Z to 2026-09-09T23:07:28.213Z Record version: sha256:fc15d30e4074c67661021ebc78302c522e5cddc346f1ddc659298ccd5a2d58d9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Pursuant to paragraph [958-220-45-8](https://asc.understandingaccounting.org/asc/220/958/#220-958-45-8), gains and losses on investments and dividends, interest, and other investment income shall be reported in the statement of activities as increases or decreases in [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).") unless their use is limited by [donor-imposed restrictions](https://asc.understandingaccounting.org/glossary/d/#donor-imposed-restriction "A donor stipulation (donors include other types of contributors, including makers of certain grants) that specifies a use for a contributed asset that is more specific than broad limits resulting from the following: The nature of the not-for-profit entity (NFP) The environment in which it operates The purposes specified in its articles of incorporation or bylaws or comparable documents for an unincorporated association. Some donors impose restrictions that are temporary in nature, for example, stipulating that resources be used after a specified date, for particular programs or services, or to acquire buildings or equipment. Other donors impose restrictions that are perpetual in nature, for example, stipulating that resources be maintained in perpetuity. Laws may extend those limits to investment returns from those resources and to other enhancements (diminishments) of those resources. Thus, those laws extend donor-imposed restrictions.") or by law that extends donor restrictions, in which case those amounts shall be reported as increases or decreases in [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)."). ##### [220-958-45-23](https://asc.understandingaccounting.org/asc/220/958/#220-958-45-23) Pending content: no Source downloaded (UTC): 2026-09-09T23:07:28.213Z to 2026-09-09T23:07:28.213Z Record version: sha256:e124fd12aa286fd8c827097251dd5197d37d56d2ea626a9725cefc972932e823 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-14](https://asc.understandingaccounting.org/updates/asu-2016-14/). ##### [220-958-45-24](https://asc.understandingaccounting.org/asc/220/958/#220-958-45-24) Pending content: no Source downloaded (UTC): 2026-09-09T23:07:28.213Z to 2026-09-09T23:07:28.213Z Record version: sha256:4e934bfa8c81855d1ba3acc6b9e338bfca061dad4630ed75cdbaf7ca3598448c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Gains and investment income that are limited to specific uses by [donor-imposed restrictions](https://asc.understandingaccounting.org/glossary/d/#donor-imposed-restriction "A donor stipulation (donors include other types of contributors, including makers of certain grants) that specifies a use for a contributed asset that is more specific than broad limits resulting from the following: The nature of the not-for-profit entity (NFP) The environment in which it operates The purposes specified in its articles of incorporation or bylaws or comparable documents for an unincorporated association. Some donors impose restrictions that are temporary in nature, for example, stipulating that resources be used after a specified date, for particular programs or services, or to acquire buildings or equipment. Other donors impose restrictions that are perpetual in nature, for example, stipulating that resources be maintained in perpetuity. Laws may extend those limits to investment returns from those resources and to other enhancements (diminishments) of those resources. Thus, those laws extend donor-imposed restrictions.") may be reported as increases in net assets without donor restrictions if the restrictions are met in the same reporting period as the gains and income are recognized, provided that the [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) has a similar policy for reporting [contributions](https://asc.understandingaccounting.org/glossary/c/#contribution "An unconditional transfer of cash or other assets, as well as unconditional promises to give, to an entity or a reduction, settlement, or cancellation of its liabilities in a voluntary nonreciprocal transfer by another entity acting other than as an owner. Those characteristics distinguish contributions from:Exchange transactions, which are reciprocal transfers in which each party receives and sacrifices approximately commensurate valueInvestments by owners and distributions to owners, which are nonreciprocal transfers between an entity and its ownersOther nonreciprocal transfers, such as impositions of taxes or legal judgments, fines, and thefts, which are not voluntary transfers. In a contribution transaction, the resource provider often receives value indirectly by providing a societal benefit although that benefit is not considered to be of commensurate value. In an exchange transaction, the potential public benefits are secondary to the potential direct benefits to the resource provider. The term contribution revenue is used to apply to transactions that are part of the entity's ongoing major or central activities (revenues), or are peripheral or incidental to the entity (gains). See also Inherent Contribution and Conditional Contribution.") received (see paragraphs [958-605-45-3 through 45-5](https://asc.understandingaccounting.org/asc/605/958/#605-958-45-3) ), reports consistently from period to period, and discloses its accounting policy. ##### [220-958-45-25](https://asc.understandingaccounting.org/asc/220/958/#220-958-45-25) Pending content: no Source downloaded (UTC): 2026-09-09T23:07:28.213Z to 2026-09-09T23:07:28.213Z Record version: sha256:4958e3e4a6913191d42d90fcf016764f329e0881a99bfd672220ee75c17372e8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Pursuant to paragraphs [958-220-45-14 through 45-16](https://asc.understandingaccounting.org/asc/220/958/#220-958-45-14) , investment return, other than that which is programmatic in nature, shall be reported net of external and direct internal investment expenses. ##### [220-958-45-26](https://asc.understandingaccounting.org/asc/220/958/#220-958-45-26) Pending content: no Source downloaded (UTC): 2026-09-09T23:07:28.213Z to 2026-09-09T23:07:28.213Z Record version: sha256:e91efaa67636684fe533536467b46eb18dca730d3cc921d377bf38d19b288388 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Gains and losses on the investments of a [donor-restricted endowment fund](https://asc.understandingaccounting.org/glossary/d/#donor-restricted-endowment-fund "An endowment fund that is created by a donor stipulation (donors include other types of contributors, including makers of certain grants) requiring investment of the gift in perpetuity or for a specified term. Some donors or laws may require that a portion of income, gains, or both be added to the gift and invested subject to similar restrictions. The term does not include a Board-Designated Endowment Fund. See Endowment Fund.") are classified in accordance with paragraphs [958-205-45-13 through 45-13H](https://asc.understandingaccounting.org/asc/205/958/#205-958-45-13). #### Presentation in a Statement of Activities with an Operating Measure ##### [220-958-45-27](https://asc.understandingaccounting.org/asc/220/958/#220-958-45-27) Pending content: no Source downloaded (UTC): 2026-09-09T23:07:28.213Z to 2026-09-09T23:07:28.213Z Record version: sha256:85f0b63c724b80cc1a57360324d500381ae2c7e3530ebe4d24a759a6df560253 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Some NFPs, primarily health care entities, would like to compare their results to business entities in the same industry. An NFP with those comparability concerns may report in a manner similar to business entities by classifying debt securities as available for sale or held to maturity as described in paragraphs [320-10-25-1 through 25-6](https://asc.understandingaccounting.org/asc/320/10/#320-10-25-1) and excluding the unrealized gains and losses on those securities (which are recognized in accordance with Subtopic 958-320) from an operating measure within the statement of activities. Not-for-profit, business-oriented health care entities, however, are required to exclude certain gains and losses from a performance measure (see paragraph [954-220-45-9](https://asc.understandingaccounting.org/asc/220/954/#220-954-45-9)). ##### [220-958-45-28](https://asc.understandingaccounting.org/asc/220/958/#220-958-45-28) Pending content: no Source downloaded (UTC): 2026-09-09T23:07:28.213Z to 2026-09-09T23:07:28.213Z Record version: sha256:2b3f5f52a532e5eb372c9c36945605a7eb3b659b79df38662ca69edfbd9b6875 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In general, amounts reported in an NFP's financial statements shall be based on the nature of the underlying transactions rather than on budgetary designations. ##### [220-958-45-29](https://asc.understandingaccounting.org/asc/220/958/#220-958-45-29) Pending content: no Source downloaded (UTC): 2026-09-09T23:07:28.213Z to 2026-09-09T23:07:28.213Z Record version: sha256:b5a0a8f8b228e146aa93a10d290d7fd84fc7d87ee455827a0e1c5ffc07a9b7ee Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Amounts of investment return based on budgetary designations may be displayed. However, in accordance with paragraph [958-220-45-14](https://asc.understandingaccounting.org/asc/220/958/#220-958-45-14), investment return, other than that which is programmatic in nature, shall be displayed net of external and direct internal investment expenses. Paragraph [958-320-55-7](https://asc.understandingaccounting.org/asc/320/958/#320-958-55-7) provides an example of how an NFP could present net investment return. ##### [220-958-45-30](https://asc.understandingaccounting.org/asc/220/958/#220-958-45-30) Pending content: no Source downloaded (UTC): 2026-09-09T23:07:28.213Z to 2026-09-09T23:07:28.213Z Record version: sha256:0ce8fb4585434964e326edac4ec7bf83bcffc0bc4e6a1376b0ccc32f60b10b17 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Some NFPs, in managing their endowment funds, use a [spending-rate](https://asc.understandingaccounting.org/glossary/s/#spending-rate "The portion of total return on investments used for fiscal needs of the current period, usually used as a budgetary method of reporting returns of investments. It is usually measured in terms of an amount or a specified percentage of a moving average market value. Typically, the selection of a spending rate emphasizes the use of prudence and a systematic formula to determine the portion of cumulative investment return that can be used to support fiscal needs of the current period and the protection of endowment gifts from a loss of purchasing power as a consideration in determining the formula to be used.") or [total return](https://asc.understandingaccounting.org/glossary/t/#total-return "A measure of investment performance that focuses on the overall return on investments, including interest and dividend income as well as realized and unrealized gains and losses on investments. Frequently used in connection with a spending-rate formula to determine how much of that return will be used for fiscal needs of the current period.") policy. Those policies consider total investment return—investment income (interest, dividends, rents, and so forth) plus net realized and unrealized gains (or minus net losses). Typically, spending-rate or total return policies emphasize the use of prudence and a rational and systematic formula to determine the portion of cumulative investment return that can be used to support operations of the current period and the protection of endowment gifts from a loss of purchasing power as a consideration in determining the formula to be used. Example 1 (see paragraph [958-320-55-4](https://asc.understandingaccounting.org/asc/320/958/#320-958-55-4)) illustrates a statement of activities and example disclosures of an NFP that uses a spending-rate policy to include only a portion of its investment return in its operating measure. #### Contributed Nonfinancial Assets ##### [220-958-45-31](https://asc.understandingaccounting.org/asc/220/958/#220-958-45-31) Pending content: no Source downloaded (UTC): 2026-09-09T23:07:28.213Z to 2026-09-09T23:07:28.213Z Record version: sha256:91c51306122e95176dac55d19c31d62ea5e9aef2baae5349d9ff27e4cc097787 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An NFP shall present contributed nonfinancial assets as a separate line item in the statement of activities, apart from contributions of cash and other financial assets, as discussed in paragraph [958-605-45-7A](https://asc.understandingaccounting.org/asc/605/958/#605-958-45-7A). See paragraph [958-605-50-1A](https://asc.understandingaccounting.org/asc/605/958/#605-958-50-1A) for disclosure requirements for contributed nonfinancial assets.