{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/320/958/#25-recognition","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.","topic":"320","topic_title":"Investments—Debt Securities","subtopic":"320-958","subtopic_title":"Not-for-Profit Entities","section":{"number":"25","label":"25 Recognition","anchor":"25-recognition","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"320-958-25-1","para":"25-1","html":"Pursuant to paragraph 958-605-25-2, if a debt security is acquired by contribution, it shall be recognized as an asset and as a revenue or gain in the period received. If a not-for-profit entity (NFP) is holding an investment as an agent and has little or no discretion in determining how the investment income, unrealized gains and losses, and realized gains and losses resulting from that investment will be used, the investment's acquisition shall be reported as an agency transaction. That is, the NFP agent recognizes the acquisition as an asset and a liability rather than as a change in net assets.