ASC 310-958
Not-for-Profit Entities
310 Receivables
Source downloaded: .Record version 9d26d9a4d86f. Effective date must be checked in the source.
This subtopic governs contributions (promises to give) receivable — a receivable unique to not-for-profit entities — focusing on subsequent measurement, presentation, and disclosure after initial recognition under 958-605. Unconditional promises are recognized as an asset and revenue when received (with verifiable documentation), measured initially under 958-605-30-4 through 30-8, and thereafter either at fair value under the 825-10 fair value option or under the change-in-value rules in Section 35 (interest accretion is contribution revenue; decreases in expected assets are bad debt expense/loss; increases generally are not recognized except as recovery of previously recognized bad debts).
Key points (7)
- A promise to give is a written or oral agreement to contribute cash or other assets; an unconditional promise is recognized as revenue or gain and as an asset in the period received, but only with sufficient verifiable documentation (310-958-25-1; 958-605-25-2).
- An NFP may irrevocably elect the fair value option of Subtopic 825-10 for most receivables; if a present value technique is used, discount rate and other assumptions are updated each measurement date, and donor restrictions specific to the donee affect net asset classification, not fair value (310-958-35-1).
- Subsequent accruals of the interest element on promises measured at present value are reported as contribution revenue (835-30-35), and as an increase in net assets with donor restrictions if the underlying promise is donor restricted (310-958-35-6; 45-2).
- Decreases in value from changes in the quantity or nature of assets expected to be received are recognized in the period the expectation changes as bad debt expense or loss; increases are not recognized except as a recovery to the extent bad debt expense or loss was previously recognized (310-958-35-7 through 35-9).
- For promises to give securities with readily determinable fair values or debt securities, observed changes in the underlying fair value are recognized as increases or decreases in contribution revenue; for other noncash assets, only decreases are recognized — increases are not (310-958-35-11 through 35-13).
- Contributions receivable are reported net of the present value discount, with the discount separately disclosed on the face of the statement of financial position or in the notes (310-958-45-1).
- Required disclosures include amounts receivable in less than one year, one to five years, and more than five years, the allowance for uncollectible promises, the unamortized discount, and, for conditional promises, the total promised plus a description and amount of each group with similar characteristics (310-958-50-1; 50-4).
For students. Exam questions love the asymmetry: declines in the expected quantity/nature of promised assets (and declines in the future fair value of promised noncash assets) hit income, but increases generally do not — except as a recovery of previously recognized bad debt, or for promised marketable securities where both increases and decreases run through contribution revenue. A common mistake is reflecting donor-imposed restrictions in the fair value measurement instead of in the net asset classification.
promises to givecontributions receivableunconditional promiseconditional promisepresent value discountfair value optionallowance for uncollectible promisesnet assets with donor restrictions
Machine-generated study aid for ASC 310-958. Check the source paragraphs below.
310-958-00Status
Source downloaded: .Record version 25f25dcad36a. Effective date must be checked in the source.
310-958-00-1
The following table identifies the changes made to this Subtopic.
310-958-05Overview and Background
Source downloaded: .Record version bcb3e931b207. Effective date must be checked in the source.
310-958-05-1
This Subtopic provides guidance about a type of receivable unique to not-for-profit entities (NFPs)—promises to give (contributions) receivable. NFPs also shall apply the initial recognition and measurement standards for promises to give in Subtopic 958-605.
310-958-15Scope and Scope Exceptions
Source downloaded: .Record version ccb49dd6c26c. Effective date must be checked in the source.
Overall Guidance
310-958-15-1
This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section 958-10-15.
310-958-25Recognition
Source downloaded: .Record version bb6acb35a203. Effective date must be checked in the source.
Contributions Receivable
310-958-25-1
A promise to give is a written or oral agreement to contribute cash or other assets to another entity. A promise to give may be either conditional or unconditional. An unconditional promise to give shall be recognized as revenue or gain in the period received and as an asset in accordance with paragraphs . Pursuant to paragraph 958-605-25-2, to be recognized in financial statements there must be sufficient evidence in the form of verifiable documentation that a promise was made and received.
310-958-30Initial Measurement
Source downloaded: .Record version 356a7e5dcd77. Effective date must be checked in the source.
Contributions Receivable
310-958-30-1
An unconditional promise to give shall be initially measured in accordance with paragraphs .
310-958-35Subsequent Measurement
Source downloaded: .Record version 1e68cb703d6c. Effective date must be checked in the source.
Fair Value Measurement
310-958-35-1
The Fair Value Option Subsections of Subtopic 825-10 create a fair value option under which a not-for-profit entity (NFP) may irrevocably elect fair value as the initial and subsequent measure for most receivables. If an NFP elects to measure a receivable at fair value and uses a present value technique to measure fair value, the discount rate assumptions, and all other elements discussed in paragraph 820-10-55-5 shall be revised at each measurement date to reflect current market conditions. Paragraph 820-10-35-2B states that a fair value measurement takes into account the effect of a restriction on the sale or use of an asset if market participants would take into account the effect of the restriction when pricing the asset. Example 6 (see paragraph 820-10-55-51) illustrates that restrictions that are a characteristic of an asset and, therefore, would transfer to a market participant are the only restrictions reflected in fair value. Donor restrictions that are specific to the donee are reflected in the classification of net assets, not in the measurement of fair value.
310-958-35-2
Unless measured at fair value in conformity with the Fair Value Option Subsections of Subtopic 825-10, receivables shall be reported at the measures described in the remainder of this Section.
Receivables from Exchange Transactions
310-958-35-3
Paragraph superseded by Accounting Standards Update No. 2025-12.
Receivables arising from exchange transactions shall be reported at net realizable value if the amounts are due within one year.
Transition date:(P) December 16, 2026; (N) December 16, 2026Transition guidance:
105-10-65-10| Editor's Note: Paragraph 958-310-35-3 will be superseded upon transition, together with its heading. |
| > Receivables from Exchange Transactions |
Contributions Receivable
310-958-35-4
After recognition, the value of a contribution arising from an unconditional promise to give cash or noncash assets (contribution receivable) may change because of any of the following reasons:
- aAccrual of the interest element for a promise to give measured using present value techniques
- bChanges in the quantity or nature of assets expected to be received (such as changes in the amounts of future cash flows)
- cChanges in the projected fair value of the underlying noncash assets at the date that those assets are expected to be received (referred to in this Section as the future fair value of underlying noncash assets)
- dChanges in the timing of assets expected to be received (This Subtopic does not provide guidance for changes in the timing of assets expected to be received.)
- eChanges in the time value of money.
310-958-35-5
See Example 1 (paragraph 958-310-55-1) for a summary of the guidance for accounting for changes in the value of promises to give subsequent to initial recognition but before collection.
310-958-35-6
If a present value technique is used to measure the fair value of unconditional promises to give cash, subsequent accruals of the interest element pursuant to Section 835-30-35 shall be accounted for as contribution revenue by donees.
310-958-35-7
If the value of a contribution receivable decreases because of changes in the quantity or nature of assets expected to be received, the decrease shall be recognized in the period(s) in which the expectation changes. That decrease shall be reported as an expense or loss (bad debt) in accordance with paragraph 958-310-45-3.
310-958-35-8
No increase in net assets shall be recognized if the value of a contribution receivable increases because of a change in the quantity or nature of assets expected to be received between the date the unconditional promise to give is recognized and the date it is collected, except as provided in the following paragraph.
310-958-35-9
If the value of a contribution receivable increases because of changes in the quantity or nature of assets expected to be received and previous decreases in the value of that unconditional promise to give resulted in expenses or losses from bad debts, the increase shall be reported as a recovery of those expenses or losses to the extent that those expenses or losses were previously recognized. The recovery shall be reported in the net asset classes in which the net assets are represented.
310-958-35-10
Amounts collected, other than a recovery of bad debt expenses or losses, in excess of the carrying amount of contributions receivable shall be reported as contribution revenue in the appropriate net asset class.
310-958-35-11
The value of a contribution receivable arising from an unconditional promise to give equity securities with readily determinable fair values or debt securities may change between the date the unconditional promise to give is recognized and the date the asset promised is received because of changes in the future fair value of the underlying securities. For purposes of subsequent measurement, the method of determining the future fair value of the underlying securities shall be the same as the method used for determining that amount for purposes of initial measurement. Thus, if a promise to give securities is measured based on the fair value of the underlying securities at the date of gift, as described in paragraph 958-605-30-8, an observed change in the current fair value of the underlying securities shall be recognized. The change shall be reported as an increase or a decrease in contribution revenue in the period(s) in which the change occurs. The change shall be recognized in the net asset class in which the contribution was originally reported or in the net asset class in which the net assets are represented.
310-958-35-12
The value of a contribution receivable arising from an unconditional promise to give noncash assets other than equity securities with readily determinable fair values or debt securities may change between the date the unconditional promise to give is recognized and the date the asset promised is received because of changes in the future fair value of the underlying noncash assets. For purposes of subsequent measurement, the method for determining the future fair value of the underlying noncash asset shall be the same as the method used for determining that amount for purposes of initial measurement. Accordingly, assumed relationships, such as the relationship between the market price of the noncash asset at the time the initial measurement is made and its projected market price at the date the asset is expected to be received, shall be presumed to continue in determining whether the future fair value of the underlying noncash asset has changed.
310-958-35-13
If the future fair value of the underlying noncash asset decreases, that decrease shall be reported as a decrease in contribution revenue in the period(s) in which the decrease occurs. The decrease shall be reported in the net asset class in which the contribution was originally reported or in the net asset class in which the net assets are represented. Thus, if a promise to give noncash assets is measured based on the fair value of those underlying noncash assets at the date of gift, as described in paragraph 958-605-30-8, an observed decrease in the current fair value of the underlying noncash asset shall be recognized. If the future fair value of the underlying noncash asset increases between the date the unconditional promise to give is recognized and the date the asset promised is received, no additional revenue shall be recognized.
310-958-45Other Presentation Matters
Source downloaded: .Record version b118eeb758a8. Effective date must be checked in the source.
Contributions Receivable—Statement of Financial Position
310-958-45-1
Contributions receivable shall be reported net of the discount that arises if measuring a promise to give at present value. The discount shall be separately disclosed by reporting it as a deduction from contributions receivable either on the face of a statement of financial position or in the notes to financial statements (see paragraph 958-310-50-1).
Contributions Receivable—Statement of Activities
310-958-45-2
If an unconditional promise to give is measured using present value techniques, a not-for-profit entity (NFP) shall report the subsequent accrual of the interest element recognized under paragraph 958-310-35-6 as an increase in net assets with donor restrictions if the underlying promise to give is donor restricted.
310-958-45-3
Decreases recognized under paragraph 958-310-35-7 shall be reported as expenses or losses (bad debt) in the net asset class in which the net assets are represented. Because all expenses are reported in the net asset without donor restrictions class, those decreases shall be reported as losses if they are decreases in net assets with donor restrictions.
310-958-50Disclosure
Source downloaded: .Record version aac933ed0b70. Effective date must be checked in the source.
Contributions Receivable
310-958-50-1
Recipients of unconditional promises to give shall disclose all of the following:
- a The amounts of promises receivable in less than one year, in one to five years, and in more than five years
- b The amount of the allowance for uncollectible promises receivable
- c The discount that arises if measuring a promise to give at present value, if that discount is not separately disclosed by reporting it as a deduction from contributions receivable on the face of a statement of financial position pursuant to paragraph 958-310-45-1.
310-958-50-2
As illustrated in paragraph 958-605-55-22, the allowance for uncollectible promises to give does not include amounts determined to be uncollectible when the contributions receivable were initially measured. For example, assume that, on the last day of its fiscal year, a not-for-profit entity (NFP) receives promises to give $100 in 5 years, that the estimated future cash flows from the promises are $70, and that the present value of the estimated future cash flows is $50. The notes to financial statements should disclose unconditional promises to give of $70 and unamortized discount of $20.
310-958-50-3
If unconditional promises to give are subsequently measured at fair value, the notes to financial statements shall also include the following disclosures:
- aDisclosures required by paragraphs and in the format described in paragraph 820-10-50-8
- bDisclosures required by paragraphs
- cDisclosures required by paragraph 825-10-50-32, if an election to report unconditional promises to give is made after initial recognition pursuant to paragraph 825-10-25-4(e).
Conditional Promises to Give
310-958-50-4
Recipients of conditional promises to give shall disclose both of the following:
- a The total of the amounts promised
- b A description and amount for each group of promises having similar characteristics, such as amounts of promises conditioned on establishing new programs, completing a new building, and raising matching gifts by a specified date.
310-958-55Implementation Guidance and Illustrations
Source downloaded: .Record version 8b561a888590. Effective date must be checked in the source.
Illustrations
310-958-55-1
This Example illustrates the accounting for changes in the value of unconditional promises to give after initial recognition but before collection, pursuant to paragraphs , if those promises to give are not measured subsequently at fair value. The following table illustrates the reason for the change in value.
-
Reason for the Change in Fair Value Underlying Asset Change in Collectibility of the Receivable Change in the Fair Value of the Underlying Asset Increase in Fair Value Decrease in Fair Value Increase in Future Fair Value "Decrease in Future Fair Value" Cash No adjustment (a) Recognize expense or loss (bad debt) Not applicable Not applicable Securities (b) No adjustment (a) Recognize expense or loss (bad debt) Recognize additional contribution revenue Recognize a decrease in contribution revenue Other assets No adjustment (a) Recognize expense or loss (bad debt) No adjustment Recognize a decrease in contribution revenue (a) "Recoveries of previously recognized decreases in fair value resulting from changes in estimates of collectibility (up to the amount of decreases previously recognized), however, shall be recognized as reductions of bad debt expense or loss." (b) "For purposes of this table, securities are defined as equity securities with readily determinable fair values and all debt securities, consistent with the use of the terms in Subtopic 958-320."
Related subtopics
- 405-958 Not-for-Profit EntitiesLiabilities
- 605-958 Not-for-Profit EntitiesRevenue Recognition
- 720-25 Contributions MadeOther Expenses
- 325-958 Not-for-Profit EntitiesInvestments—Other
- 320-958 Not-for-Profit EntitiesInvestments—Debt Securities
- 205-958 Not-for-Profit EntitiesPresentation of Financial Statements