{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/230/958/","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.","number":"230-958","topic":"230","title":"Not-for-Profit Entities","area":"Presentation","paragraphs":11,"summary":"This subtopic provides implementation guidance for how not-for-profit entities (NFPs) prepare a statement of cash flows under Topic 230. It addresses when otherwise-qualifying short-term investments cannot be treated as cash equivalents because of donor restrictions, how donor-restricted contributions for long-term purposes must be reclassified as financing inflows, and how agency transactions, noncash contributions, and collection items are reported.","concepts":["statement of cash flows","cash equivalents","donor-imposed restrictions","financing activities","agency transactions","noncash investing and financing activities","collection items","indirect method"],"categories":["Presentation","Cash flows","Not-for-profit","Disclosure"],"level":"intermediate","topic_title":"Statement of Cash Flows","sections":[{"number":"00","label":"00 Status","anchor":"00-status","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"230-958-00-1","para":"00-1","html":"<div class=\"asc-body\"><div class=\"norm-text\">The following table identifies the changes made to this Subtopic.</div> <div class=\"norm-text\"> <table class=\"asc-table\" id=\"SL6262029-165523\"> <tr> <td class=\"entry\"> <strong class=\"ph b\">Paragraph</strong> </td> <td class=\"entry\"> <strong class=\"ph b\">Action</strong> </td> <td class=\"entry\"> <strong class=\"ph b\">Accounting Standards Update</strong> </td> <td class=\"entry\"> <strong class=\"ph b\">Date</strong> </td> </tr> <tr> <td class=\"entry\"></td> <td class=\"entry\"></td> <td class=\"entry\"></td> <td class=\"entry\"></td> </tr> <tr> <td class=\"entry\"> <a href=\"/glossary/a/#agency-transaction\" class=\"term\" title=\"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.\"><span>Agency Transaction</span></a> </td> <td class=\"entry\">Added</td> <td class=\"entry\"> <a href=\"/updates/asu-2015-10/\" class=\"xref\">Accounting Standards Update No. 2015-10</a> </td> <td class=\"entry\">06/12/2015</td> </tr> <tr> <td class=\"entry\"> <strong class=\"ph b\">Agency Transactions (Not for Profits)</strong> </td> <td class=\"entry\">Superseded</td> <td class=\"entry\"> <a href=\"/updates/asu-2015-10/\" class=\"xref\">Accounting Standards Update No. 2015-10</a> </td> <td class=\"entry\">06/12/2015</td> </tr> <tr> <td class=\"entry\"> <a href=\"/glossary/c/#conditional-contribution\" class=\"term\" title=\"A contribution that contains a donor-imposed condition.\"><span>Conditional Contribution</span></a> </td> <td class=\"entry\">Added</td> <td class=\"entry\"> <a href=\"/updates/asu-2018-08/\" class=\"xref\">Accounting Standards Update No. 2018-08</a> </td> <td class=\"entry\">06/21/2018</td> </tr> <tr> <td class=\"entry\"> <a href=\"/glossary/c/#contribution\" class=\"term\" title=\"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.\"><span>Contribution</span></a> </td> <td class=\"entry\">Amended</td> <td class=\"entry\"> <a href=\"/updates/asu-2018-08/\" class=\"xref\">Accounting Standards Update No. 2018-08</a> </td> <td class=\"entry\">06/21/2018</td> </tr> <tr> <td class=\"entry\"> <a href=\"/glossary/c/#contribution\" class=\"term\" title=\"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.\"><span>Contribution</span></a> </td> <td class=\"entry\">Amended</td> <td class=\"entry\"> <a href=\"/updates/asu-2010-07/\" class=\"xref\">Accounting Standards Update No. 2010-07</a> </td> <td class=\"entry\">01/28/2010</td> </tr> <tr> <td class=\"entry\"> <a href=\"/glossary/d/#donor-imposed-condition\" class=\"term\" title=\"A donor stipulation (donors include other types of contributors, including makers of certain grants) that represents a barrier that must be overcome before the recipient is entitled to the assets transferred or promised. Failure to overcome the barrier gives the contributor a right of return of the assets it has transferred or gives the promisor a right of release from its obligation to transfer its assets.\"><span>Donor-Imposed Condition</span></a> </td> <td class=\"entry\">Added</td> <td class=\"entry\"> <a href=\"/updates/asu-2018-08/\" class=\"xref\">Accounting Standards Update No. 2018-08</a> </td> <td class=\"entry\">06/21/2018</td> </tr> <tr> <td class=\"entry\"> <a href=\"/glossary/d/#donor-imposed-restriction\" class=\"term\" title=\"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.\"><span>Donor-Imposed Restriction</span></a> </td> <td class=\"entry\">Amended</td> <td class=\"entry\"> <a href=\"/updates/asu-2016-14/\" class=\"xref\">Accounting Standards Update No. 2016-14</a> </td> <td class=\"entry\">08/18/2016</td> </tr> <tr> <td class=\"entry\"> <strong class=\"ph b\">Financial Asset</strong> (1st def.)</td> <td class=\"entry\">Superseded</td> <td class=\"entry\"> <a href=\"/updates/asu-2016-19/\" class=\"xref\">Accounting Standards Update No. 2016-19</a> </td> <td class=\"entry\">12/14/2016</td> </tr> <tr> <td class=\"entry\"> <strong class=\"ph b\">Financial Asset</strong> (1st def.)</td> <td class=\"entry\">Added</td> <td class=\"entry\"> <a href=\"/updates/asu-2012-05/\" class=\"xref\">Accounting Standards Update No. 2012-05</a> </td> <td class=\"entry\">10/22/2012</td> </tr> <tr> <td class=\"entry\"> <a href=\"/glossary/f/#financial-asset\" class=\"term\" title=\"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.\"><span>Financial Asset</span></a> (2nd def.)</td> <td class=\"entry\">Added</td> <td class=\"entry\"> <a href=\"/updates/asu-2016-19/\" class=\"xref\">Accounting Standards Update No. 2016-19</a> </td> <td class=\"entry\">12/14/2016</td> </tr> <tr> <td class=\"entry\"> <a href=\"/glossary/p/#promise-to-give\" class=\"term\" title=\"A written or oral agreement to contribute cash or other assets to another entity. A promise carries rights and obligations—the recipient of a promise to give has a right to expect that the promised assets will be transferred in the future, and the maker has a social and moral obligation, and generally a legal obligation, to make the promised transfer. A promise to give may be either conditional or unconditional.\"><span>Promise to Give</span></a> </td> <td class=\"entry\">Added</td> <td class=\"entry\"> <a href=\"/updates/asu-2018-08/\" class=\"xref\">Accounting Standards Update No. 2018-08</a> </td> <td class=\"entry\">06/21/2018</td> </tr> <tr> <td class=\"entry\"></td> <td class=\"entry\"></td> <td class=\"entry\"></td> <td class=\"entry\"></td> </tr> <tr> <td class=\"entry\"> <a href=\"/asc/230/958/#230-958-55-3\" class=\"xref\">958-230-55-3</a> </td> <td class=\"entry\">Amended</td> <td class=\"entry\"> <a href=\"/updates/asu-2023-08/\" class=\"xref\">Accounting Standards Update No. 2023-08</a> </td> <td class=\"entry\">12/13/2023</td> </tr> <tr> <td class=\"entry\"> <a href=\"/asc/230/958/#230-958-55-3\" class=\"xref\">958-230-55-3</a> </td> <td class=\"entry\">Amended</td> <td class=\"entry\"> <a href=\"/updates/asu-2016-19/\" class=\"xref\">Accounting Standards Update No. 2016-19</a> </td> <td class=\"entry\">12/14/2016</td> </tr> <tr> <td class=\"entry\"> <a href=\"/asc/230/958/#230-958-55-3\" class=\"xref\">958-230-55-3</a> </td> <td class=\"entry\">Amended</td> <td class=\"entry\"> <a href=\"/updates/asu-2016-18/\" class=\"xref\">Accounting Standards Update No. 2016-18</a> </td> <td class=\"entry\">11/17/2016</td> </tr> <tr> <td class=\"entry\"> <a href=\"/asc/230/958/#230-958-55-3\" class=\"xref\">958-230-55-3</a> </td> <td class=\"entry\">Amended</td> <td class=\"entry\"> <a href=\"/updates/asu-2012-05/\" class=\"xref\">Accounting Standards Update No. 2012-05</a> </td> <td class=\"entry\">10/22/2012</td> </tr> <tr> <td class=\"entry\"> <a href=\"/asc/230/958/#230-958-55-4\" class=\"xref\">958-230-55-4</a> </td> <td class=\"entry\">Amended</td> <td class=\"entry\"> <a href=\"/updates/asu-2015-10/\" class=\"xref\">Accounting Standards Update No. 2015-10</a> </td> <td class=\"entry\">06/12/2015</td> </tr> </table> </div> </div>","snippet":"The following table identifies the changes made to this Subtopic.\nParagraph | Action | Accounting Standards Update | Date |\n| | | |\nAgency Transaction | Added | Accounting Standards Update No. 2015-10 | 06/12/2015 |\nAgen…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:86bb942a8f37f537485af8594bdbaaf88d6d2da8c5b475325fc80529f7250607","downloaded_from":"2026-09-09T23:13:28.515Z","last_downloaded_at":"2026-09-09T23:13:28.515Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477350","source_sha256":"bc72b8e211bb5df9811c14e9ff01c3f457eac54bb53048225966384bb77d19ba"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:7e0ad3db3824565040dd2a8d89640c71c45268a708bc4480528173e31cab2b80","downloaded_from":"2026-09-09T23:13:28.515Z","last_downloaded_at":"2026-09-09T23:13:28.515Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477350","source_sha256":"bc72b8e211bb5df9811c14e9ff01c3f457eac54bb53048225966384bb77d19ba"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:db150714ea0870fef05161160d9c1b30f04de96fa2c4b59aafc63fcdaebcedcf","downloaded_from":"2026-09-09T23:13:28.515Z","last_downloaded_at":"2026-09-09T23:13:28.515Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477350","source_sha256":"bc72b8e211bb5df9811c14e9ff01c3f457eac54bb53048225966384bb77d19ba"}},{"number":"05","label":"05 Overview and Background","anchor":"05-overview-and-background","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"230-958-05-1","para":"05-1","html":"<div class=\"asc-body\"><div class=\"norm-text\">This Subtopic provides implementation guidance related to the statement of cash flows for <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 entities</span></a> (NFPs).</div></div>","snippet":"This Subtopic provides implementation guidance related to the statement of cash flows for not-for-profit entities (NFPs).","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:4331e8ff348246cec93cf606591482f268041581822f667ab785f875b562cda1","downloaded_from":"2026-09-09T23:13:35.358Z","last_downloaded_at":"2026-09-09T23:13:35.358Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477705","source_sha256":"c82af6f2494c7e01b01165895b95a0e96a138ec86d18ce0a48af3dce307e8f33"}},{"citation":"230-958-05-2","para":"05-2","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_321DA9AE-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">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 <a altsource=\"GUID-7AA86F8F-C9D3-42B2-A494-0F505922BDA6.ditamap\" class=\"ditamap\">230</a> discusses how that information helps investors, creditors, and others and establishes standards for the information to be provided in a statement of cash flows. </span></span></div></div>","snippet":"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, credit…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a432fb234acf471a3220e46822f608226a5724e7998f10b6770e513682342dd2","downloaded_from":"2026-09-09T23:13:35.358Z","last_downloaded_at":"2026-09-09T23:13:35.358Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477705","source_sha256":"c82af6f2494c7e01b01165895b95a0e96a138ec86d18ce0a48af3dce307e8f33"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d6562f4a76d74502075135ad0f82e7ac5a7833d4728ccbd33680eb734f112b50","downloaded_from":"2026-09-09T23:13:35.358Z","last_downloaded_at":"2026-09-09T23:13:35.358Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477705","source_sha256":"c82af6f2494c7e01b01165895b95a0e96a138ec86d18ce0a48af3dce307e8f33"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ce7932f1432eb6b01b33eedad26aa747423f3c8dd47cc9c8a427c113fa9a8b21","downloaded_from":"2026-09-09T23:13:35.358Z","last_downloaded_at":"2026-09-09T23:13:35.358Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477705","source_sha256":"c82af6f2494c7e01b01165895b95a0e96a138ec86d18ce0a48af3dce307e8f33"}},{"number":"15","label":"15 Scope and Scope Exceptions","anchor":"15-scope-and-scope-exceptions","is_sec":false,"groups":[{"block":null,"heading":"Overall Guidance","paragraphs":[{"citation":"230-958-15-1","para":"15-1","html":"<div class=\"asc-body\"><div class=\"norm-text\">This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section <a altsource=\"GUID-0DD748A2-DAEB-4A20-B494-CB4C774CFCAE.ditamap\" class=\"ditamap\">958-10-15</a>.</div></div>","snippet":"This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section 958-10-15.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:20ac207a04cd43c1d7127c3fd2452f487cb9d326f4630592f67d569aacbb2b4b","downloaded_from":"2026-09-09T23:13:37.779Z","last_downloaded_at":"2026-09-09T23:13:37.779Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477418","source_sha256":"cebe0196cabcc5693db14e1387a9d5dfac1dd16f79fb76ad3ac511ce2107d05a"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:fe6343e08cedd0ec462574f7d13f5fc109bab1e7c484a79e0fda6e3467fcdf47","downloaded_from":"2026-09-09T23:13:37.779Z","last_downloaded_at":"2026-09-09T23:13:37.779Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477418","source_sha256":"cebe0196cabcc5693db14e1387a9d5dfac1dd16f79fb76ad3ac511ce2107d05a"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:83a1170cbca0da5b4a2971c35575d30383aa092fdc207014d34d4f85236902b4","downloaded_from":"2026-09-09T23:13:37.779Z","last_downloaded_at":"2026-09-09T23:13:37.779Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477418","source_sha256":"cebe0196cabcc5693db14e1387a9d5dfac1dd16f79fb76ad3ac511ce2107d05a"}},{"number":"55","label":"55 Implementation Guidance and Illustrations","anchor":"55-implementation-guidance-and-illustrations","is_sec":false,"groups":[{"block":null,"heading":"Implementation Guidance","paragraphs":[{"citation":"230-958-55-1","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 by <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 entities</span></a> (NFPs) in the preparation of a statement of cash flows.</div></div>","snippet":"This Section, which is an integral part of the requirements of this Subtopic, provides general guidance to be used by not-for-profit entities (NFPs) in the preparation of a statement of cash flows.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ea82180d8360ed5c4fbb90448645dcb1d5b369cdcd6070923d0fbccade59514a","downloaded_from":"2026-09-09T23:13:43.817Z","last_downloaded_at":"2026-09-09T23:13:43.817Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477410","source_sha256":"d57343dad935156bf4f7dde2a644eb584a859c550318a53e173f0a77a3d57865"}},{"citation":"230-958-55-2","para":"55-2","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_324BA3D9-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Not all assets of NFPs that meet the definition of <a href=\"/glossary/c/#cash-equivalents\" class=\"term\" title=\"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).\"><span>cash equivalents</span></a> are cash equivalents for purposes of preparing statements of financial position and cash flows. </span></span><span class=\"sfragment\" id=\"sfr_324BA583-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Restrictions can prevent them from being included as cash equivalents even if they otherwise qualify. </span></span><span class=\"sfragment\" id=\"sfr_324BA6EF-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">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. </span></span></div></div>","snippet":"Not all assets of NFPs that meet the definition of cash equivalents are cash equivalents for purposes of preparing statements of financial position and cash flows. Restrictions can prevent them from being included as cas…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:0b3ebffc3f8ccbe4187282183d90f33ead3fa14e8291882f23202665c68dd087","downloaded_from":"2026-09-09T23:13:43.817Z","last_downloaded_at":"2026-09-09T23:13:43.817Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477410","source_sha256":"d57343dad935156bf4f7dde2a644eb584a859c550318a53e173f0a77a3d57865"}},{"citation":"230-958-55-3","para":"55-3","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"GUID-CADC28A1-C007-4598-B1FE-E4A76C2D1E22\"><span class=\"sfragment-source\">When an NFP reports cash received </span></span><span class=\"sfragment\" id=\"GUID-4477B1C6-3CC0-4DD7-B45A-9339A180DCC9\"><span class=\"sfragment-source\">(or cash receipts from the sale of donated <a href=\"/glossary/f/#financial-asset\" class=\"term\" title=\"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.\"><span>financial assets</span></a></span></span><span class=\"sfragment\" id=\"GUID-85F92504-BE80-4834-8DF7-A2A85BFFE5AA\"><span class=\"sfragment-source\"> or crypto assets accounted for in accordance with Subtopic <a altsource=\"GUID-E825E230-C750-4F53-BFD3-C4557CC627FC.ditamap\" class=\"ditamap\">350-60</a></span></span><span class=\"sfragment\" id=\"GUID-0ACF1D7C-7424-485C-A4FE-3867CACCAF22\"><span class=\"sfragment-source\"> that upon receipt were directed without any NFP-imposed limitations for sale and were converted nearly immediately into cash as discussed in paragraph <a href=\"/asc/230/10/#230-10-45-21A\" class=\"xref\">230-10-45-21A</a>)</span></span><span class=\"sfragment\" id=\"GUID-9A2D4083-611A-417D-B9EB-473C8F5C74E5\"><span class=\"sfragment-source\"> with a <a href=\"/glossary/d/#donor-imposed-restriction\" class=\"term\" title=\"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.\"><span>donor-imposed restriction</span></a> that limits its use to long-term purposes in conformity with paragraph <a href=\"/asc/210/958/#210-958-45-6\" class=\"xref\">958-210-45-6</a>, an adjustment </span></span><span class=\"sfragment\" id=\"GUID-79C5C6F5-F160-4CA7-8DC3-BE547A174BF5\"><span class=\"sfragment-source\">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 <a href=\"/asc/230/10/#230-10-45-14\" class=\"xref\">230-10-45-14(c)</a>. </span></span></div></div>","snippet":"When an NFP reports cash received (or cash receipts from the sale of donated financial assets or crypto assets accounted for in accordance with Subtopic 350-60 that upon receipt were directed without any NFP-imposed limi…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ffca6002a3d4e341df2154c7e92dbcfa281f526c001680820fd229c1aaa0a68a","downloaded_from":"2026-09-09T23:13:43.817Z","last_downloaded_at":"2026-09-09T23:13:43.817Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477410","source_sha256":"d57343dad935156bf4f7dde2a644eb584a859c550318a53e173f0a77a3d57865"}},{"citation":"230-958-55-4","para":"55-4","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_324BAE49-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Cash received and paid in <a href=\"/glossary/a/#agency-transaction\" class=\"term\" title=\"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.\"><span>agency transactions</span></a> 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. </span></span></div></div>","snippet":"Cash received and paid in agency transactions 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 a…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d6088e48b4ab939e9eb61b4060f4fb6033c59d218105dcee44d94a94b15be017","downloaded_from":"2026-09-09T23:13:43.817Z","last_downloaded_at":"2026-09-09T23:13:43.817Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477410","source_sha256":"d57343dad935156bf4f7dde2a644eb584a859c550318a53e173f0a77a3d57865"}},{"citation":"230-958-55-5","para":"55-5","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_324BAF87-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Separate disclosure of noncash investing and financing activities (for example, receiving contributions of buildings, securities, or recognized collection items) is required by paragraph <a href=\"/asc/230/10/#230-10-50-3\" class=\"xref\">230-10-50-3</a>. </span></span></div></div>","snippet":"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.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e22ea1a8b33e09343fb31a2da36d3cc008eedb0c391120e453e5f1454e995d13","downloaded_from":"2026-09-09T23:13:43.817Z","last_downloaded_at":"2026-09-09T23:13:43.817Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477410","source_sha256":"d57343dad935156bf4f7dde2a644eb584a859c550318a53e173f0a77a3d57865"}},{"citation":"230-958-55-5A","para":"55-5A","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_324BB0CD-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">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. </span></span></div></div>","snippet":"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.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:8dbe40ca447207648e22300aaa12b1831ee491ec9be129bc0b750f39ad6420e8","downloaded_from":"2026-09-09T23:13:43.817Z","last_downloaded_at":"2026-09-09T23:13:43.817Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477410","source_sha256":"d57343dad935156bf4f7dde2a644eb584a859c550318a53e173f0a77a3d57865"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:bf73ddddf87019d639fac3fea54442e38f96387e5e638128a8077370e962a8fb","downloaded_from":"2026-09-09T23:13:43.817Z","last_downloaded_at":"2026-09-09T23:13:43.817Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477410","source_sha256":"d57343dad935156bf4f7dde2a644eb584a859c550318a53e173f0a77a3d57865"}},{"block":null,"heading":"Illustrations","paragraphs":[{"citation":"230-958-55-6","para":"55-6","html":"<div class=\"asc-body\"><div class=\"norm-text\">Guidance in paragraphs <div class=\"xref-range displayInline\"><a href=\"/asc/205/958/#205-958-55-18\" class=\"xref\">958-205-55-18 through 55-20</a></div> illustrates both the direct and indirect methods of reporting cash flows from operating activities in a statement of cash flows. 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 those illustrative statements.</div></div>","snippet":"Guidance in paragraphs 958-205-55-18 through 55-20 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 provides the fact…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:270a18a7c5bd3c674e5f41d7b83f942de923018343dcb3895edf17b0cf8ead87","downloaded_from":"2026-09-09T23:13:43.817Z","last_downloaded_at":"2026-09-09T23:13:43.817Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477410","source_sha256":"d57343dad935156bf4f7dde2a644eb584a859c550318a53e173f0a77a3d57865"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:3de153ff8fcba6f1fb6cb5d281694fd646daef1209aca9c7061f891943c68d97","downloaded_from":"2026-09-09T23:13:43.817Z","last_downloaded_at":"2026-09-09T23:13:43.817Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477410","source_sha256":"d57343dad935156bf4f7dde2a644eb584a859c550318a53e173f0a77a3d57865"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:9460a4476632786fba4b43ee7f6f00fa00c960065c31c9835363efdf2b2b1a75","downloaded_from":"2026-09-09T23:13:43.817Z","last_downloaded_at":"2026-09-09T23:13:43.817Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477410","source_sha256":"d57343dad935156bf4f7dde2a644eb584a859c550318a53e173f0a77a3d57865"}}],"enrichment":{"summary":"This subtopic provides implementation guidance for how not-for-profit entities (NFPs) prepare a statement of cash flows under Topic 230. It addresses when otherwise-qualifying short-term investments cannot be treated as cash equivalents because of donor restrictions, how donor-restricted contributions for long-term purposes must be reclassified as financing inflows, and how agency transactions, noncash contributions, and collection items are reported.","key_points":["Assets meeting the definition of cash equivalents are not cash equivalents for an NFP if restrictions prevent that classification—for example, short-term highly liquid investments purchased with resources carrying donor-imposed restrictions limiting their use to long-term investment (230-958-55-2).","Cash received with a donor-imposed restriction limiting its use to long-term purposes (per 958-210-45-6) must be presented as a financing cash inflow under 230-10-45-14(c), so under the indirect method an adjustment to the change in net assets is required to reconcile to net cash flows from operating activities (230-958-55-3).","This reclassification also applies to cash receipts from the sale of donated financial assets or crypto assets under Subtopic 350-60 that upon receipt were directed without NFP-imposed limitations for sale and converted nearly immediately into cash (230-958-55-3; 230-10-45-21A).","Cash received and paid in agency transactions is reported as operating activities, and under the indirect method may be reported either gross or net (230-958-55-4).","Noncash investing and financing activities—such as contributions of buildings, securities, or recognized collection items—must be separately disclosed under 230-10-50-3 (230-958-55-5).","Cash flows from purchases, sales, and insurance recoveries of unrecognized, noncapitalized collection items are reported as investing activities (230-958-55-5A).","Illustrations of both the direct and indirect methods for NFP operating cash flows appear in 958-205-55-18 through 55-20, based on facts in 958-205-55-5 (230-958-55-6)."],"categories":["Presentation","Cash flows","Not-for-profit","Disclosure"],"audience_level":"intermediate","student_note":"Exam questions love the trap that a donor-restricted contribution for endowment or plant is a financing inflow, not operating—and that donor-restricted short-term liquid investments are not cash equivalents even though they look like them. Remember agency transactions run through operating (gross or net under the indirect method), while unrecognized, noncapitalized collection item transactions run through investing.","related_topics":["230-10","958-205","958-210","958-605","350-60"],"key_concepts":["statement of cash flows","cash equivalents","donor-imposed restrictions","financing activities","agency transactions","noncash investing and financing activities","collection items","indirect method"],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:24367e0baa7947f1dbc476aaf7a583e988f98629c2699f04a22d162f9f5e5d34","downloaded_from":"2026-09-09T23:13:28.515Z","last_downloaded_at":"2026-09-09T23:13:43.817Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},"related":[{"number":"230-10","title":"Overall","topic_title":"Statement of Cash Flows","score":0.8078,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:1a0baec9e02a48f6511bf5c40d455f18b4b825c0db21c8a7d108c9af4d45c383","downloaded_from":"2026-09-09T23:11:17.967Z","last_downloaded_at":"2026-09-09T23:11:49.870Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"220-958","title":"Not-for-Profit Entities","topic_title":"Income Statement—Reporting Comprehensive Income","score":0.7863,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:7223d53263e99cc140dfa5576a104dd0a57250e0d5f37f3ec5a7ef601f6afce0","downloaded_from":"2026-09-09T23:07:15.767Z","last_downloaded_at":"2026-09-09T23:07:32.842Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"205-958","title":"Not-for-Profit Entities","topic_title":"Presentation of Financial Statements","score":0.7722,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:9368a18f17bcf08d3f4a1b72a57216b4acf4dee2d38a8efe12d0e42a0e71304d","downloaded_from":"2026-09-09T22:55:47.235Z","last_downloaded_at":"2026-09-09T22:56:13.307Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"210-958","title":"Not-for-Profit Entities","topic_title":"Balance Sheet","score":0.7675,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b3241a506efea60c04b90e2219d1361ecdc74b52c583cbb01801400d38bb6d04","downloaded_from":"2026-09-09T23:02:23.603Z","last_downloaded_at":"2026-09-09T23:02:44.054Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"320-958","title":"Not-for-Profit Entities","topic_title":"Investments—Debt Securities","score":0.7594,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:24f9f34e43f35680c23f42b403c22f4d71cec52a57066b8cc555e89a546eb02c","downloaded_from":"2026-09-09T23:37:46.933Z","last_downloaded_at":"2026-09-09T23:38:15.825Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"958-10","title":"Overall","topic_title":"Not-for-Profit Entities","score":0.7518,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e81df47e092452246e1c4e8178820b47ec333466d260d2d7787298591da74ad6","downloaded_from":"2026-09-10T02:21:08.558Z","last_downloaded_at":"2026-09-10T02:21:26.859Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}}],"prev":{"number":"230-946","title":"Financial Services—Investment Companies","topic_title":"Statement of Cash Flows","provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b7c2aedd20a134aa6b1d96b3730c0a229d33d55221501b9dfb152a994ebe099d","downloaded_from":"2026-09-09T23:13:18.198Z","last_downloaded_at":"2026-09-09T23:13:26.841Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},"next":{"number":"230-970","title":"Real Estate—General","topic_title":"Statement of Cash Flows","provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a35fab35607553b97a81ae609f0f991ee0720acea7ef4be7368f8fd8a9130013","downloaded_from":"2026-09-09T23:13:47.405Z","last_downloaded_at":"2026-09-09T23:13:52.062Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d1e8e6956e37dd87fb4740ebd981d5627fa25d4308821d7d4bd8b18164b5e776","downloaded_from":"2026-09-09T23:13:28.515Z","last_downloaded_at":"2026-09-09T23:13:43.817Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}}