# ASC 230-958-05: Statement of Cash Flows — Not-for-Profit Entities — 05 Overview and Background

Source: FASB Accounting Standards Codification, Basic View

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## ASC 230-958-05: 05 Overview and Background

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##### [230-958-05-1](https://asc.understandingaccounting.org/asc/230/958/#230-958-05-1)

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This Subtopic provides implementation guidance related to the statement of cash flows for [not-for-profit entities](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.") (NFPs).

##### [230-958-05-2](https://asc.understandingaccounting.org/asc/230/958/#230-958-05-2)

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The primary purpose of a statement of cash flows is to provide relevant information about the cash receipts and cash payments of an entity during a period. Topic 230 discusses how that information helps investors, creditors, and others and establishes standards for the information to be provided in a statement of cash flows.