# ASC 230-958-55: Statement of Cash Flows — Not-for-Profit Entities — 55 Implementation Guidance and Illustrations Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/230/958/#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): 2026-09-09T23:13:43.817Z to 2026-09-09T23:13:43.817Z Record version: sha256:9460a4476632786fba4b43ee7f6f00fa00c960065c31c9835363efdf2b2b1a75 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 230-958-55: 55 Implementation Guidance and Illustrations [Read section](https://asc.understandingaccounting.org/asc/230/958/#55-implementation-guidance-and-illustrations) SEC content: no #### Implementation Guidance ##### [230-958-55-1](https://asc.understandingaccounting.org/asc/230/958/#230-958-55-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:13:43.817Z to 2026-09-09T23:13:43.817Z Record version: sha256:ea82180d8360ed5c4fbb90448645dcb1d5b369cdcd6070923d0fbccade59514a 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 by [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) in the preparation of a statement of cash flows. ##### [230-958-55-2](https://asc.understandingaccounting.org/asc/230/958/#230-958-55-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:13:43.817Z to 2026-09-09T23:13:43.817Z Record version: sha256:0b3ebffc3f8ccbe4187282183d90f33ead3fa14e8291882f23202665c68dd087 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Not all assets of NFPs that meet the definition of [cash equivalents](https://asc.understandingaccounting.org/glossary/c/#cash-equivalents "Cash equivalents are short-term, highly liquid investments that have both of the following characteristics: Readily convertible to known amounts of cash So near their maturity that they present insignificant risk of changes in value because of changes in interest rates. Generally, only investments with original maturities of three months or less qualify under that definition. Original maturity means original maturity to the entity holding the investment. For example, both a three-month U.S. Treasury bill and a three-year U.S. Treasury note purchased three months from maturity qualify as cash equivalents. However, a Treasury note purchased three years ago does not become a cash equivalent when its remaining maturity is three months. Examples of items commonly considered to be cash equivalents are Treasury bills, commercial paper, money market funds, and federal funds sold (for an entity with banking operations).") are cash equivalents for purposes of preparing statements of financial position and cash flows. Restrictions can prevent them from being included as cash equivalents even if they otherwise qualify. For example, short-term highly liquid investments are not cash equivalents if they are purchased with resources that have donor-imposed restrictions that limit their use to long-term investment. ##### [230-958-55-3](https://asc.understandingaccounting.org/asc/230/958/#230-958-55-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:13:43.817Z to 2026-09-09T23:13:43.817Z Record version: sha256:ffca6002a3d4e341df2154c7e92dbcfa281f526c001680820fd229c1aaa0a68a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. When an NFP reports cash received (or cash receipts from the sale of donated [financial assets](https://asc.understandingaccounting.org/glossary/f/#financial-asset "Cash, evidence of an ownership interest in an entity, or a contract that conveys to one entity a right to do either of the following: Receive cash or another financial instrument from a second entity Exchange other financial instruments on potentially favorable terms with the second entity.") or crypto assets accounted for in accordance with Subtopic 350-60 that upon receipt were directed without any NFP-imposed limitations for sale and were converted nearly immediately into cash as discussed in paragraph [230-10-45-21A](https://asc.understandingaccounting.org/asc/230/10/#230-10-45-21A)) with a [donor-imposed restriction](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.") that limits its use to long-term purposes in conformity with paragraph [958-210-45-6](https://asc.understandingaccounting.org/asc/210/958/#210-958-45-6), an adjustment to the change in net assets to reconcile to net cash flows from operating activities is necessary when using the indirect method of reporting cash flows in order to present those cash receipts as cash inflows from financing activities as required by paragraph [230-10-45-14(c)](https://asc.understandingaccounting.org/asc/230/10/#230-10-45-14). ##### [230-958-55-4](https://asc.understandingaccounting.org/asc/230/958/#230-958-55-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:13:43.817Z to 2026-09-09T23:13:43.817Z Record version: sha256:d6088e48b4ab939e9eb61b4060f4fb6033c59d218105dcee44d94a94b15be017 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Cash received and paid in [agency transactions](https://asc.understandingaccounting.org/glossary/a/#agency-transaction "A type of exchange transaction in which the reporting entity acts as an agent, trustee, or intermediary for another party that may be a donor or donee.") shall be reported as cash flows from operating activities in a statement of cash flows. If the statement of cash flows is presented using the indirect method, cash received and paid in such transactions is permitted to be reported either gross or net. ##### [230-958-55-5](https://asc.understandingaccounting.org/asc/230/958/#230-958-55-5) Pending content: no Source downloaded (UTC): 2026-09-09T23:13:43.817Z to 2026-09-09T23:13:43.817Z Record version: sha256:e22ea1a8b33e09343fb31a2da36d3cc008eedb0c391120e453e5f1454e995d13 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Separate disclosure of noncash investing and financing activities (for example, receiving contributions of buildings, securities, or recognized collection items) is required by paragraph [230-10-50-3](https://asc.understandingaccounting.org/asc/230/10/#230-10-50-3). ##### [230-958-55-5A](https://asc.understandingaccounting.org/asc/230/958/#230-958-55-5A) Pending content: no Source downloaded (UTC): 2026-09-09T23:13:43.817Z to 2026-09-09T23:13:43.817Z Record version: sha256:8dbe40ca447207648e22300aaa12b1831ee491ec9be129bc0b750f39ad6420e8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Cash flows from purchases, sales, and insurance recoveries of unrecognized, noncapitalized collection items shall be reported as investing activities in a statement of cash flows. #### Illustrations ##### [230-958-55-6](https://asc.understandingaccounting.org/asc/230/958/#230-958-55-6) Pending content: no Source downloaded (UTC): 2026-09-09T23:13:43.817Z to 2026-09-09T23:13:43.817Z Record version: sha256:270a18a7c5bd3c674e5f41d7b83f942de923018343dcb3895edf17b0cf8ead87 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Guidance in paragraphs [958-205-55-18 through 55-20](https://asc.understandingaccounting.org/asc/205/958/#205-958-55-18) illustrates both the direct and indirect methods of reporting cash flows from operating activities in a statement of cash flows. 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 those illustrative statements.