{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/320/958/#55-implementation-guidance-and-illustrations","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":"55","label":"55 Implementation Guidance and Illustrations","anchor":"55-implementation-guidance-and-illustrations","is_sec":false,"groups":[{"block":null,"heading":"Implementation Guidance","paragraphs":[{"citation":"320-958-55-1","para":"55-1","html":"
The term debt security includes any security representing a creditor relationship with an entity. Thus, the term debt security includes all of the following securities, among other items:
  1. a
    U.S. Treasury securities
  2. b
    U.S. government agency securities
  3. c
    Municipal securities
  4. d
    Corporate bonds
  5. e
    Convertible debt
  6. f
    Commercial paper
  7. g
    All securitized debt instruments, such as collateralized mortgage obligations and real estate mortgage investment conduits
  8. h
    Interest-only and principal-only strips
  9. i
    Preferred stock that by its terms either must be redeemed by the issuing entity or is redeemable at the option of the investor
  10. j
    A collateralized mortgage obligation (or other instrument) that is issued in equity form but is required to be accounted for as a nonequity instrument regardless of how that instrument is classified (that is, whether equity or debt) in the issuer's statement of financial position.
","snippet":"The term debt security includes any security representing a creditor relationship with an entity. Thus, the term debt security includes all of the following securities, among other items:\n(a) U.S. Treasury securities\n(b)…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b1d03348beb5da357fbffd0cd707a51b8b6d54eb6ff103d62f3f447f04d9ca2b","downloaded_from":"2026-09-09T23:38:12.012Z","last_downloaded_at":"2026-09-09T23:38:12.012Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478467","source_sha256":"bcf8ad0405c90612b8f25fafd4cc8946ec8a9423018d69ec5d6945a4a53f8b2f"}},{"citation":"320-958-55-2","para":"55-2","html":"
However, the term debt security excludes all of the following instruments:
  1. a
    Option contracts
  2. b
    Financial futures contracts
  3. c
    Forward contracts
  4. d
    Lease contracts
  5. e
    Swap contracts
  6. f
    Receivables that do not meet the definition of security and, thus, are not debt securities, for example:
    1. 1
      Trade accounts receivable arising from sales on credit
    2. 2
      Loans receivable arising from consumer, commercial, and real estate lending activities of financial institutions and not-for-profit entities (NFPs).
    However, if those receivables have been securitized, they would meet the definition of a security, and thus be a debt security. Paragraph 320-10-55-3 explains that, even if a loan could readily be converted into a security, the loan is not a debt security until it has been securitized.
","snippet":"However, the term debt security excludes all of the following instruments:\n(a) Option contracts\n(b) Financial futures contracts\n(c) Forward contracts\n(d) Lease contracts\n(e) Swap contracts\n(f) Receivables that do not mee…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:785d69e1984e347b74d9ff3e7cf90a4d42655e1409b82d0b4fe601b99e49d3b6","downloaded_from":"2026-09-09T23:38:12.012Z","last_downloaded_at":"2026-09-09T23:38:12.012Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478467","source_sha256":"bcf8ad0405c90612b8f25fafd4cc8946ec8a9423018d69ec5d6945a4a53f8b2f"}},{"citation":"320-958-55-3","para":"55-3","html":"
Paragraph superseded by Accounting Standards Update No. 2016-01.
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This Example illustrates the disclosures required by paragraph 958-320-50-2 and a statement of activities that reports investment return in accordance with paragraphs
958-220-45-22 through 45-26
.
","snippet":"This Example illustrates the disclosures required by paragraph 958-320-50-2 and a statement of activities that reports investment return in accordance with paragraphs 958-220-45-22 through 45-26.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:3985f3fd1ec1fa1ab898684e3f25bd07b089cc6373bda0bbf882b5dbb2c0ab95","downloaded_from":"2026-09-09T23:38:12.012Z","last_downloaded_at":"2026-09-09T23:38:12.012Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478467","source_sha256":"bcf8ad0405c90612b8f25fafd4cc8946ec8a9423018d69ec5d6945a4a53f8b2f"}},{"citation":"320-958-55-5","para":"55-5","html":"
Paragraph superseded by Accounting Standards Update No. 2016-14.
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This Example has the following assumptions:
  1. a
    Not-for-Profit Entity A (NFP A) invests cash in excess of daily requirements in short-term investments; during the year, those investments earned $1,275.
  2. b
    Most long-term investments of NFP A's endowments are held in an investment pool, which earned income of $11,270 and had net gains of $15,450.
  3. c
    Certain endowments are separately invested because of donors' requirements. The investments of those endowments earned income of $1,000 and increased in value by $1,500.
  4. d
    Subparagraph superseded by Accounting Standards Update No. 2016-14.
  5. e
    NFP A released from restrictions the full amount of net assets with donor restrictions that were appropriated from the donor-restricted endowment fund ($4,500) because the entity spent the funds for the required purpose.
  6. f
    NFP A's governing board appropriated for expenditure $1,025 from its short-term investments.
  7. g
    NFP A had $25 of gross programmatic investing income. The expenses related to the programmatic activity are included in operating expenses.
","snippet":"This Example has the following assumptions:\n(a) Not-for-Profit Entity A (NFP A) invests cash in excess of daily requirements in short-term investments; during the year, those investments earned $1,275.\n(b) Most long-term…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:582c78979a639d9a9a58153c4d84265d6cd10e26c96794e605e59de22be338f7","downloaded_from":"2026-09-09T23:38:12.012Z","last_downloaded_at":"2026-09-09T23:38:12.012Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478467","source_sha256":"bcf8ad0405c90612b8f25fafd4cc8946ec8a9423018d69ec5d6945a4a53f8b2f"}},{"citation":"320-958-55-7","para":"55-7","html":"
A statement of activities of NFP A is illustrated as follows.
","snippet":"A statement of activities of NFP A is illustrated as follows.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:2e8a3950c8f19ce7fb64562309e72694c3d1b0146cb4f5e40cd47748012b5d4e","downloaded_from":"2026-09-09T23:38:12.012Z","last_downloaded_at":"2026-09-09T23:38:12.012Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478467","source_sha256":"bcf8ad0405c90612b8f25fafd4cc8946ec8a9423018d69ec5d6945a4a53f8b2f"}},{"citation":"320-958-55-8","para":"55-8","html":"
NFP A would add the following illustrative text to its note to financial statements that describes the measure of operations.
","snippet":"NFP A would add the following illustrative text to its note to financial statements that describes the measure of operations.\nThe board of trustees designates only a portion of NFP A's cumulative investment return for su…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:36682503ddfa4363831953d820c71450883fd2acf4a92809fd3943d8d58bd288","downloaded_from":"2026-09-09T23:38:12.012Z","last_downloaded_at":"2026-09-09T23:38:12.012Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478467","source_sha256":"bcf8ad0405c90612b8f25fafd4cc8946ec8a9423018d69ec5d6945a4a53f8b2f"}},{"citation":"320-958-55-9","para":"55-9","html":"
Paragraph superseded by Accounting Standards Update No. 2016-14.
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Paragraph superseded by Accounting Standards Update No. 2016-14.
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In accordance with the requirements in paragraph 958-320-50-2, an NFP would disclose the aggregate carrying amount of investments by major types and may choose to combine these disclosure requirements with disclosures about the level in the fair value hierarchy as required in Topic 820 on fair value measurement.
","snippet":"In accordance with the requirements in paragraph 958-320-50-2, an NFP would disclose the aggregate carrying amount of investments by major types and may choose to combine these disclosure requirements with disclosures ab…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:3dbbce29f27681ee8f210f6aee2d6bf06bc2219ddc5454a5cc146b3e47c33dbf","downloaded_from":"2026-09-09T23:38:12.012Z","last_downloaded_at":"2026-09-09T23:38:12.012Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478467","source_sha256":"bcf8ad0405c90612b8f25fafd4cc8946ec8a9423018d69ec5d6945a4a53f8b2f"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a429e192e719bb91952d1cd9e7eb5624013d25fb19cf434e83152fa0e96d45a7","downloaded_from":"2026-09-09T23:38:12.012Z","last_downloaded_at":"2026-09-09T23:38:12.012Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478467","source_sha256":"bcf8ad0405c90612b8f25fafd4cc8946ec8a9423018d69ec5d6945a4a53f8b2f"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ec8023c0825d4c4ef3d6c382a3fcdbb3488d318a8aec8ee059beebb44eca4293","downloaded_from":"2026-09-09T23:38:12.012Z","last_downloaded_at":"2026-09-09T23:38:12.012Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478467","source_sha256":"bcf8ad0405c90612b8f25fafd4cc8946ec8a9423018d69ec5d6945a4a53f8b2f"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ec8023c0825d4c4ef3d6c382a3fcdbb3488d318a8aec8ee059beebb44eca4293","downloaded_from":"2026-09-09T23:38:12.012Z","last_downloaded_at":"2026-09-09T23:38:12.012Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478467","source_sha256":"bcf8ad0405c90612b8f25fafd4cc8946ec8a9423018d69ec5d6945a4a53f8b2f"}}