# ASC 320-958-05: Investments—Debt Securities — Not-for-Profit Entities — 05 Overview and Background

Source: FASB Accounting Standards Codification, Basic View

[Read online](https://asc.understandingaccounting.org/asc/320/958/#05-overview-and-background)

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## ASC 320-958-05: 05 Overview and Background

[Read section](https://asc.understandingaccounting.org/asc/320/958/#05-overview-and-background)

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##### [320-958-05-1](https://asc.understandingaccounting.org/asc/320/958/#320-958-05-1)

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The Not-for-Profit Entities Topic contains several Subtopics for investments held 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) because the guidance differs by form of the investment. The Subtopics are:

1.  a
    
    Financially Interrelated Entities
    
2.  b
    
    Investments—Debt Securities
    
3.  bb
    
    Investments—Equity Securities
    
4.  c
    
    Investments—Other
    
5.  d
    
    Consolidation.

##### [320-958-05-2](https://asc.understandingaccounting.org/asc/320/958/#320-958-05-2)

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This Subtopic establishes standards of financial accounting and reporting for all investments in debt securities held by NFPs. It also establishes disclosure requirements for those and most other investments held by NFPs.