# ASC 320-958: Investments—Debt Securities — Not-for-Profit Entities Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/320/958/) 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. Tables and mathematical or amendment markup are retained as HTML where Markdown would lose structure. Source downloaded (UTC): 2026-09-09T23:37:46.933Z to 2026-09-09T23:38:15.825Z Record version: sha256:d242df77f1bdc4f4eb90bb54f4c67daa75d81387b177e63ad9e63850c9518ece Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 320-958: Investments—Debt Securities — Not-for-Profit Entities ### Machine-generated study aids ```json { "summary": "This Subtopic (codified as 958-320) governs how not-for-profit entities account for investments in debt securities and sets disclosure rules for most NFP investments. The core rule is simple and different from the business-entity model: all debt securities held by an NFP are carried at fair value in the statement of financial position, with no held-to-maturity, trading, or available-for-sale classification. Purchased securities are initially measured at acquisition cost (excluding brokerage and other transaction fees); contributed securities and those received in agency transactions are initially measured at fair value.", "key_points": [ "All investments in debt securities held by an NFP, including mortgage-backed securities, shall be measured at fair value in the statement of financial position (320-958-35-1; 320-958-15-2).", "Initial measurement is acquisition cost excluding brokerage and other transaction fees if purchased, and fair value if received as a contribution or through an agency transaction (320-958-30-1).", "A debt security acquired by contribution is recognized as an asset and as revenue or gain in the period received (320-958-25-1, citing 958-605-25-2).", "If the NFP holds the investment as an agent with little or no discretion over how income and gains and losses will be used, the acquisition and subsequent activity are reported as agency transactions—changes in assets and liabilities, not changes in net assets (320-958-25-3; 320-958-35-3).", "Scope excludes equity-method investments and consolidated subsidiaries (958-810-15-4), derivatives under Topic 815, short sales, and investments held by a financially interrelated entity (Subtopic 958-20) (320-958-15-4); an embedded derivative does not remove the host contract from scope (320-958-15-5).", "An entity does not look through the legal form of its investment to the investee's underlying securities—a limited partnership interest meeting the definition of an equity security stays an equity security even if the partnership holds mostly debt securities (320-958-15-6).", "Disclosures: aggregate carrying amount of investments by major type for each statement of financial position presented (320-958-50-2), and the nature and carrying amount of each investment or group representing a significant concentration of market risk for the most recent period (320-958-50-3)." ], "categories": [ "Financial instruments", "Not-for-profit", "Subsequent measurement", "Disclosure" ], "audience_level": "intermediate", "student_note": "Exam trap: students carry over the 320-10 three-bucket model (trading/AFS/HTM) to NFPs—there is none; every debt security an NFP holds is at fair value, with return reported in the statement of activities per 958-220-45-22 through 45-30. The second common miss is the no-look-through rule in 320-958-15-6, which classifies a partnership interest by its own form, not by the investee's underlying assets.", "related_topics": [ "958-321", "958-325", "958-220", "958-605", "320-10", "820" ], "key_concepts": [ "debt security", "fair value measurement", "not-for-profit investments", "agency transaction", "contributed securities", "concentration of market risk", "major types of investments", "scope exceptions" ] } ``` Source downloaded (UTC): 2026-09-09T23:37:46.933Z to 2026-09-09T23:37:46.933Z Record version: sha256:3ed5e6ddce473989221d1b906cee264f67c5ad61e05344c9b0c5d8491dead5a6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 320-958-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/320/958/#00-status) SEC content: no ##### [320-958-00-1](https://asc.understandingaccounting.org/asc/320/958/#320-958-00-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:37:46.933Z to 2026-09-09T23:37:46.933Z Record version: sha256:fbca214bb00e454f6cc5c41490f90e159de349a4c758096338ae3587790465fe Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following table identifies the changes made to this Subtopic.
ParagraphActionAccounting Standards UpdateDate
Agency TransactionAddedAccounting Standards Update No. 2015-1006/12/2015
Agency Transactions (Not for Profits)SupersededAccounting Standards Update No. 2015-1006/12/2015
Board-Designated Endowment FundAmendedAccounting Standards Update No. 2016-1408/18/2016
Conditional ContributionAddedAccounting Standards Update No. 2018-0806/21/2018
ContributionAmendedAccounting Standards Update No. 2018-0806/21/2018
ContributionAmendedAccounting Standards Update No. 2010-0701/28/2010
Debt Security (1st def.)AmendedAccounting Standards Update No. 2016-1912/14/2016
Debt SecurityAddedAccounting Standards Update No. 2016-0101/05/2016
Donor-Imposed ConditionAddedAccounting Standards Update No. 2018-0806/21/2018
Donor-Imposed RestrictionAddedAccounting Standards Update No. 2016-1408/18/2016
Donor-Restricted Endowment FundAmendedAccounting Standards Update No. 2016-1408/18/2016
Endowment FundAmendedAccounting Standards Update No. 2016-1408/18/2016
Equity Security (1st def.)SupersededAccounting Standards Update No. 2016-0101/05/2016
Funds Functioning as EndowmentAddedAccounting Standards Update No. 2016-1408/18/2016
Net AssetsAmendedAccounting Standards Update No. 2016-1408/18/2016
Net Assets with Donor RestrictionsAddedAccounting Standards Update No. 2016-1408/18/2016
Net Assets without Donor RestrictionsAddedAccounting Standards Update No. 2016-1408/18/2016
Permanently Restricted Net AssetsSupersededAccounting Standards Update No. 2016-1408/18/2016
Programmatic InvestingAddedAccounting Standards Update No. 2016-1408/18/2016
Promise to GiveAddedAccounting Standards Update No. 2018-0806/21/2018
Readily Determinable Fair ValueSupersededAccounting Standards Update No. 2016-0101/05/2016
Readily Determinable Fair ValueAmendedAccounting Standards Update No. 2015-1006/12/2015
Readily Determinable Fair ValueAmendedAccounting Standards Update No. 2014-0603/14/2014
Spending RateAddedAccounting Standards Update No. 2014-0603/14/2014
Temporarily Restricted Net AssetsSupersededAccounting Standards Update No. 2016-1408/18/2016
Unrestricted Net AssetsSupersededAccounting Standards Update No. 2016-1408/18/2016
958-320-05-1AmendedAccounting Standards Update No. 2016-0101/05/2016
958-320-05-2AmendedAccounting Standards Update No. 2016-0101/05/2016
958-320-15-1A through 15-4
AmendedAccounting Standards Update No. 2016-0101/05/2016
958-320-15-1AAddedAccounting Standards Update No. 2012-0410/01/2012
958-320-15-6AmendedAccounting Standards Update No. 2016-0101/05/2016
958-320-15-7AmendedAccounting Standards Update No. 2016-0101/05/2016
958-320-25-1AmendedAccounting Standards Update No. 2016-0101/05/2016
958-320-25-1AmendedMaintenance Update 2015-11 (PDF)06/19/2015
958-320-25-2AmendedMaintenance Update 2016-05 (PDF)04/12/2016
958-320-25-2SupersededAccounting Standards Update No. 2016-0101/05/2016
958-320-25-2AmendedAccounting Standards Update No. 2014-0603/14/2014
958-320-30-1AmendedAccounting Standards Update No. 2016-0101/05/2016
958-320-35-1AmendedAccounting Standards Update No. 2016-0101/05/2016
958-320-35-2SupersededAccounting Standards Update No. 2016-0101/05/2016
958-320-35-3AmendedAccounting Standards Update No. 2015-1006/12/2015
958-320-45-1AmendedAccounting Standards Update No. 2016-1408/18/2016
958-320-45-1 through 45-10
SupersededAccounting Standards Update No. 2016-0101/05/2016
958-320-45-2SupersededAccounting Standards Update No. 2016-1408/18/2016
958-320-45-3 through 45-5
AmendedAccounting Standards Update No. 2016-1408/18/2016
958-320-45-5AmendedAccounting Standards Update No. 2012-0410/01/2012
958-320-45-6AmendedAccounting Standards Update No. 2012-0410/01/2012
958-320-45-8AmendedAccounting Standards Update No. 2016-1408/18/2016
958-320-45-9AmendedAccounting Standards Update No. 2014-0603/14/2014
958-320-50-1SupersededAccounting Standards Update No. 2016-1408/18/2016
958-320-55-3SupersededAccounting Standards Update No. 2016-0101/05/2016
958-320-55-4AmendedAccounting Standards Update No. 2016-1408/18/2016
958-320-55-5SupersededAccounting Standards Update No. 2016-1408/18/2016
958-320-55-5AmendedAccounting Standards Update No. 2016-1306/16/2016
958-320-55-5AmendedAccounting Standards Update No. 2014-0603/14/2014
958-320-55-6 through 55-8
AmendedAccounting Standards Update No. 2016-1408/18/2016
958-320-55-9SupersededAccounting Standards Update No. 2016-1408/18/2016
958-320-55-10SupersededAccounting Standards Update No. 2016-1408/18/2016
958-320-55-11AddedAccounting Standards Update No. 2016-1408/18/2016
958-320-60-1SupersededAccounting Standards Update No. 2022-0203/31/2022
958-320-60-1AmendedAccounting Standards Update No. 2016-0101/05/2016
Source downloaded (UTC): 2026-09-09T23:37:48.647Z to 2026-09-09T23:37:48.647Z Record version: sha256:a8142aeee05c1a1e4b093f108bc18d0c09b792903e9d56255405bdd50782ce08 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 320-958-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/320/958/#05-overview-and-background) SEC content: no ##### [320-958-05-1](https://asc.understandingaccounting.org/asc/320/958/#320-958-05-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:37:48.647Z to 2026-09-09T23:37:48.647Z Record version: sha256:68cca221f90b52a07612b83f35880528d22de7d02c7441860ca2cb4919933a4c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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) Pending content: no Source downloaded (UTC): 2026-09-09T23:37:48.647Z to 2026-09-09T23:37:48.647Z Record version: sha256:5694e6108573dff1a38d7c609a5c45fc80a507b1f59513f94a04fc7a0f2c7c31 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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. Source downloaded (UTC): 2026-09-09T23:37:50.575Z to 2026-09-09T23:37:50.575Z Record version: sha256:6a52fcceec1b69e0c6ccbfd58e8e50319cb4772a4667a2cd38a384539652132c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 320-958-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/320/958/#15-scope-and-scope-exceptions) SEC content: no #### Overall Guidance ##### [320-958-15-1](https://asc.understandingaccounting.org/asc/320/958/#320-958-15-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:37:50.575Z to 2026-09-09T23:37:50.575Z Record version: sha256:806c43b5777f52d963ee707dd3cdf0f133fa2cd96802180c54313d68ca9ac5b7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section 958-10-15, with specific exceptions noted below. #### Health Care Entities ##### [320-958-15-1A](https://asc.understandingaccounting.org/asc/320/958/#320-958-15-1A) Pending content: no Source downloaded (UTC): 2026-09-09T23:37:50.575Z to 2026-09-09T23:37:50.575Z Record version: sha256:8e18da18702d9518f42090a90dc10f4ecf5fbbf86d0f7878d7ec4b57b53b3391 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The application of this Subtopic by not-for-profit, business-oriented health care entities, as described in paragraph [954-10-05-2(b)](https://asc.understandingaccounting.org/asc/954/10/#954-10-05-2), is subject to additional guidance in Subtopic 954-220. #### Instruments ##### [320-958-15-2](https://asc.understandingaccounting.org/asc/320/958/#320-958-15-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:37:50.575Z to 2026-09-09T23:37:50.575Z Record version: sha256:6fa9cf84102042ccb45e163ce5d40401f0a0a37dbfeb4908aa464e021232d7ed Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The measurement standards in Section 958-320-35 apply to all investments in debt securities, including mortgage-backed securities. 1. a [Subparagraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). 2. b [Subparagraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). ##### [320-958-15-3](https://asc.understandingaccounting.org/asc/320/958/#320-958-15-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:37:50.575Z to 2026-09-09T23:37:50.575Z Record version: sha256:2f614653c17be6511af7e23d146137ccaceb0f85de0ccc1c0a40b95aab71e5ce Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The reporting standards in paragraphs [958-220-45-22 through 45-30](https://asc.understandingaccounting.org/asc/220/958/#220-958-45-22) and Section 958-320-50 apply to all 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), except those described in the following paragraph. ##### [320-958-15-4](https://asc.understandingaccounting.org/asc/320/958/#320-958-15-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:37:50.575Z to 2026-09-09T23:37:50.575Z Record version: sha256:43904005fb6d1e643bceebd39d0263b132b7d144e9f9112e2570d4e18cce74e4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in this Subtopic does not apply to any of the following: 1. a An investment in equity securities that is accounted for under the equity method in accordance with paragraph [958-810-15-4](https://asc.understandingaccounting.org/asc/810/958/#810-958-15-4) or in accordance with Subtopic 958-321. 2. b An investment in a subsidiary that is consolidated in accordance with paragraph [958-810-15-4](https://asc.understandingaccounting.org/asc/810/958/#810-958-15-4) or [958-810-25-2 through 25-4](https://asc.understandingaccounting.org/asc/810/958/#810-958-25-2) . 3. c An investment in a derivative instrument that is subject to the requirements of Topic 815. That is, an investment in an option on securities shall be accounted for under the requirements of Subtopic 815-10 if the option meets the definition of a derivative instrument, including the criteria for net settlement in paragraph [815-10-15-99](https://asc.understandingaccounting.org/asc/815/10/#815-10-15-99). 4. d Short sales of securities (sales of securities that the seller does not own at the time of sale), because they are obligations to deliver securities, not investments. Short sale obligations are addressed in the guidance for certain industries (see paragraph [940-320-35-1](https://asc.understandingaccounting.org/asc/320/940/#320-940-35-1) with respect to broker-dealers and paragraph [942-405-35-1](https://asc.understandingaccounting.org/asc/405/942/#405-942-35-1) with respect to depository institutions). For guidance on evaluating whether a short sale transaction involves a derivative instrument, see paragraph [815-10-55-57](https://asc.understandingaccounting.org/asc/815/10/#815-10-55-57). 5. e Investments held by a [financially interrelated entity](https://asc.understandingaccounting.org/glossary/f/#financially-interrelated-entities "A recipient entity and a specified beneficiary are financially interrelated entities if the relationship between them has both of the following characteristics: One of the entities has the ability to influence the operating and financial decisions of the other. One of the entities has an ongoing economic interest in the net assets of the other."). See Subtopic 958-20 for reporting interests in the [net assets](https://asc.understandingaccounting.org/glossary/n/#net-assets "The excess or deficiency of assets over liabilities of a not-for-profit entity, which is divided into two mutually exclusive classes according to the existence or absence of donor-imposed restrictions. See Net Assets with Donor Restrictions and Net Assets without Donor Restrictions.") of a financially interrelated entity. ##### [320-958-15-5](https://asc.understandingaccounting.org/asc/320/958/#320-958-15-5) Pending content: no Source downloaded (UTC): 2026-09-09T23:37:50.575Z to 2026-09-09T23:37:50.575Z Record version: sha256:4d2942f6c78738d167aed9264b9dc6e7cc9d282d85280f27bfdc86335afedaf1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If an investment would otherwise be in the scope of this Subtopic and it has within it an embedded derivative that is subject to the requirements of Topic 815, the host contract (as described in paragraph [815-15-05-1](https://asc.understandingaccounting.org/asc/815/15/#815-15-05-1)) remains within the scope of this Subtopic. ##### [320-958-15-6](https://asc.understandingaccounting.org/asc/320/958/#320-958-15-6) Pending content: no Source downloaded (UTC): 2026-09-09T23:37:50.575Z to 2026-09-09T23:37:50.575Z Record version: sha256:f1dd44578dcdf79407e8ae9c4bc6380dcdcd545e268b143759f6b75401ed639d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. When determining whether an instrument is within the scope of this Subtopic, an entity shall not look through the form of its investment to the nature of the securities held by an investee. For example, an entity invests in a limited partnership interest (or a venture capital entity) that meets the definition of an equity security. However, substantially all of the partnership's assets consist of investments in debt securities. In the specific situation described, the investment would be considered an equity security. #### Other Considerations ##### [320-958-15-7](https://asc.understandingaccounting.org/asc/320/958/#320-958-15-7) Pending content: no Source downloaded (UTC): 2026-09-09T23:37:50.575Z to 2026-09-09T23:37:50.575Z Record version: sha256:1630c858be296b87c10e659c0223e4204cbff81dd8b4c0cd6dbb1069d6bf99fb Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic does not specify methods to be used for measuring the amount of interest income. Source downloaded (UTC): 2026-09-09T23:37:57.941Z to 2026-09-09T23:37:57.941Z Record version: sha256:d1c5326f2f04d7014288c54b0e69865766597fc65d15308733fba673105e0277 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 320-958-25: 25 Recognition [Read section](https://asc.understandingaccounting.org/asc/320/958/#25-recognition) SEC content: no ##### [320-958-25-1](https://asc.understandingaccounting.org/asc/320/958/#320-958-25-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:37:57.941Z to 2026-09-09T23:37:57.941Z Record version: sha256:0a61a5cf431cccff025fe37416a9870174888090e232faf1facae05894d49e3f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Pursuant to paragraph [958-605-25-2](https://asc.understandingaccounting.org/asc/605/958/#605-958-25-2), if a [debt security](https://asc.understandingaccounting.org/glossary/d/#debt-security "Any security representing a creditor relationship with an entity. The term debt security also includes all of the following: Preferred stock that by its terms either must be redeemed by the issuing entity or is redeemable at the option of the investor 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 U.S. Treasury securities U.S. government agency securities Municipal securities Corporate bonds Convertible debt Commercial paper All securitized debt instruments, such as collateralized mortgage obligations and real estate mortgage investment conduits Interest-only and principal-only strips. The term debt security excludes all of the following: Option contracts Financial futures contracts Forward contracts Lease contracts Receivables that do not meet the definition of security and, so, are not debt securities, for example: Trade accounts receivable arising from sales on credit by industrial or commercial entities Loans receivable arising from consumer, commercial, and real estate lending activities of financial institutions.") is acquired by contribution, it shall be recognized as an asset and as a revenue or gain in the period received. ##### [320-958-25-2](https://asc.understandingaccounting.org/asc/320/958/#320-958-25-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:37:57.941Z to 2026-09-09T23:37:57.941Z Record version: sha256:44dbc3db06de81c6dafeaf481606aa83f8f607363523da4a1cf2c0ecd37ad5cc Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). ##### [320-958-25-3](https://asc.understandingaccounting.org/asc/320/958/#320-958-25-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:37:57.941Z to 2026-09-09T23:37:57.941Z Record version: sha256:5c50b4964a27ea18d0fefaff2c03f6ee5057e28e38b6ed69d64b2842011ea49d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If a [not-for-profit entity](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.") (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. Source downloaded (UTC): 2026-09-09T23:37:59.741Z to 2026-09-09T23:37:59.741Z Record version: sha256:130cfa9c6cf0f2588c45581d00f5adbd5e789b50d2ec11702663316ff5198b99 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 320-958-30: 30 Initial Measurement [Read section](https://asc.understandingaccounting.org/asc/320/958/#30-initial-measurement) SEC content: no ##### [320-958-30-1](https://asc.understandingaccounting.org/asc/320/958/#320-958-30-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:37:59.741Z to 2026-09-09T23:37:59.741Z Record version: sha256:14fd84af86c912543613187e71eadcaecfecf0118415d8978d345e392544ec69 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A [debt security](https://asc.understandingaccounting.org/glossary/d/#debt-security "Any security representing a creditor relationship with an entity. The term debt security also includes all of the following: Preferred stock that by its terms either must be redeemed by the issuing entity or is redeemable at the option of the investor 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 U.S. Treasury securities U.S. government agency securities Municipal securities Corporate bonds Convertible debt Commercial paper All securitized debt instruments, such as collateralized mortgage obligations and real estate mortgage investment conduits Interest-only and principal-only strips. The term debt security excludes all of the following: Option contracts Financial futures contracts Forward contracts Lease contracts Receivables that do not meet the definition of security and, so, are not debt securities, for example: Trade accounts receivable arising from sales on credit by industrial or commercial entities Loans receivable arising from consumer, commercial, and real estate lending activities of financial institutions.") shall be initially measured at its acquisition cost (excluding brokerage and other transaction fees) if it is purchased. It shall be initially measured at [fair value](https://asc.understandingaccounting.org/glossary/f/#fair-value "The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.") if it is received as a [contribution](https://asc.understandingaccounting.org/glossary/c/#contribution "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.") or through an [agency transaction](https://asc.understandingaccounting.org/glossary/a/#agency-transaction "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."). Source downloaded (UTC): 2026-09-09T23:38:03.778Z to 2026-09-09T23:38:03.778Z Record version: sha256:92b7be4e7baa728cf857e38c491c4c36e1c703795d3fd02bbbe151cc8d224c7b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 320-958-35: 35 Subsequent Measurement [Read section](https://asc.understandingaccounting.org/asc/320/958/#35-subsequent-measurement) SEC content: no ##### [320-958-35-1](https://asc.understandingaccounting.org/asc/320/958/#320-958-35-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:38:03.778Z to 2026-09-09T23:38:03.778Z Record version: sha256:98f9a8aa7c72535a0aa24331da302ba9aa00c099f7281d9f3d1ed274f7bea1b6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. All investments in [debt securities](https://asc.understandingaccounting.org/glossary/d/#debt-security "Any security representing a creditor relationship with an entity. The term debt security also includes all of the following: Preferred stock that by its terms either must be redeemed by the issuing entity or is redeemable at the option of the investor 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 U.S. Treasury securities U.S. government agency securities Municipal securities Corporate bonds Convertible debt Commercial paper All securitized debt instruments, such as collateralized mortgage obligations and real estate mortgage investment conduits Interest-only and principal-only strips. The term debt security excludes all of the following: Option contracts Financial futures contracts Forward contracts Lease contracts Receivables that do not meet the definition of security and, so, are not debt securities, for example: Trade accounts receivable arising from sales on credit by industrial or commercial entities Loans receivable arising from consumer, commercial, and real estate lending activities of financial institutions.") shall be measured at [fair value](https://asc.understandingaccounting.org/glossary/f/#fair-value "The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.") in the statement of financial position. ##### [320-958-35-2](https://asc.understandingaccounting.org/asc/320/958/#320-958-35-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:38:03.778Z to 2026-09-09T23:38:03.778Z Record version: sha256:4a5125a62ce70358633b4004d927bf53a68e6a0cc6c7f8079d6ee3f5ee09061f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). #### Investments Held As an Agent ##### [320-958-35-3](https://asc.understandingaccounting.org/asc/320/958/#320-958-35-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:38:03.778Z to 2026-09-09T23:38:03.778Z Record version: sha256:a2903df0fe2ca1cf8b053eb54003bdfcc66ca382c898918ac099a0d7715e1025 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If a [not-for-profit entity](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.") (NFP) is holding an investment as an [agent](https://asc.understandingaccounting.org/glossary/a/#agent "An entity that acts for and on behalf of another. Although the term agency has a legal definition, the term is used broadly to encompass not only legal agency, but also the relationships described in Topic 958. A recipient entity acts as an agent for and on behalf of a donor if it receives assets from the donor and agrees to use those assets on behalf of or transfer those assets, the return on investment of those assets, or both to a specified beneficiary. A recipient entity acts as an agent for and on behalf of a beneficiary if it agrees to solicit assets from potential donors specifically for the beneficiary's use and to distribute those assets to the beneficiary. A recipient entity also acts as an agent if a beneficiary can compel the recipient entity to make distributions to it or on its behalf.") 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, those investment activities shall be reported as [agency transactions](https://asc.understandingaccounting.org/glossary/a/#agency-transaction "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.") and, therefore, as changes in assets and liabilities, rather than as changes in [net assets](https://asc.understandingaccounting.org/glossary/n/#net-assets "The excess or deficiency of assets over liabilities of a not-for-profit entity, which is divided into two mutually exclusive classes according to the existence or absence of donor-imposed restrictions. See Net Assets with Donor Restrictions and Net Assets without Donor Restrictions."). Source downloaded (UTC): 2026-09-09T23:38:06.246Z to 2026-09-09T23:38:06.246Z Record version: sha256:a3bad936cf67cc57b895272138c7794ad1263b3fc6b58c358d6b1bd2e50425d3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 320-958-45: 45 Other Presentation Matters [Read section](https://asc.understandingaccounting.org/asc/320/958/#45-other-presentation-matters) SEC content: no ##### [320-958-45-1](https://asc.understandingaccounting.org/asc/320/958/#320-958-45-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:38:06.246Z to 2026-09-09T23:38:06.246Z Record version: sha256:e681ab5572f8f09506db412b536c51a4e05728c1e2cbc421c0fb75fa01714122 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). ##### [320-958-45-2](https://asc.understandingaccounting.org/asc/320/958/#320-958-45-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:38:06.246Z to 2026-09-09T23:38:06.246Z Record version: sha256:b2f2c5647f5307929dbc4cf69f0d078b113d7ba5a7c57131ebbb6b2abc253008 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-14](https://asc.understandingaccounting.org/updates/asu-2016-14/). ##### [320-958-45-3](https://asc.understandingaccounting.org/asc/320/958/#320-958-45-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:38:06.246Z to 2026-09-09T23:38:06.246Z Record version: sha256:05df8135a84ca12c938b36be8440d4d5a470661b3e95cb3c1f79f76ab7cdf272 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). ##### [320-958-45-4](https://asc.understandingaccounting.org/asc/320/958/#320-958-45-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:38:06.246Z to 2026-09-09T23:38:06.246Z Record version: sha256:6dfc739d6091080b6d4f01a56ec258c737a73d2f46913ae768512fb58e96dd1c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). ##### [320-958-45-5](https://asc.understandingaccounting.org/asc/320/958/#320-958-45-5) Pending content: no Source downloaded (UTC): 2026-09-09T23:38:06.246Z to 2026-09-09T23:38:06.246Z Record version: sha256:1bcda1890569af5b8bd3080c08fb5f178258c0bcf584750e81070de2a839d19d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). ##### [320-958-45-6](https://asc.understandingaccounting.org/asc/320/958/#320-958-45-6) Pending content: no Source downloaded (UTC): 2026-09-09T23:38:06.246Z to 2026-09-09T23:38:06.246Z Record version: sha256:218766952fd090bcd14c3627ed0b1e1ffa56b9f9d03ea80c323178c100cbd017 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). ##### [320-958-45-7](https://asc.understandingaccounting.org/asc/320/958/#320-958-45-7) Pending content: no Source downloaded (UTC): 2026-09-09T23:38:06.246Z to 2026-09-09T23:38:06.246Z Record version: sha256:dd8243b913596ef67bfc5a13a0a0cfd03bd110346442d385fb46ad73451847a4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). ##### [320-958-45-8](https://asc.understandingaccounting.org/asc/320/958/#320-958-45-8) Pending content: no Source downloaded (UTC): 2026-09-09T23:38:06.246Z to 2026-09-09T23:38:06.246Z Record version: sha256:b14cfd54d4ae2ddc16de4cd6b901c6e4243afd4697c2689838fbd2b02235b69b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). ##### [320-958-45-9](https://asc.understandingaccounting.org/asc/320/958/#320-958-45-9) Pending content: no Source downloaded (UTC): 2026-09-09T23:38:06.246Z to 2026-09-09T23:38:06.246Z Record version: sha256:95b382354298399c3fc5881cc3ef1ce4b00388a94cd568a4053a941d4b1ed37b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). ##### [320-958-45-10](https://asc.understandingaccounting.org/asc/320/958/#320-958-45-10) Pending content: no Source downloaded (UTC): 2026-09-09T23:38:06.246Z to 2026-09-09T23:38:06.246Z Record version: sha256:3a07cf39904e719ffac91ae567e6fe7bbeba821af656d2cc5be6d35333b69cfe Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). Source downloaded (UTC): 2026-09-09T23:38:09.760Z to 2026-09-09T23:38:09.760Z Record version: sha256:1e68f8d8150392a25f73ddab90763a09cb89fcfccebdf527514eb947504b8204 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 320-958-50: 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/320/958/#50-disclosure) SEC content: no ##### [320-958-50-1](https://asc.understandingaccounting.org/asc/320/958/#320-958-50-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:38:09.760Z to 2026-09-09T23:38:09.760Z Record version: sha256:32869cf49df21fd19adb6c15dad8e46e137aeb3443e2f4d8ef3165afe0dab37e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-14](https://asc.understandingaccounting.org/updates/asu-2016-14/). ##### [320-958-50-2](https://asc.understandingaccounting.org/asc/320/958/#320-958-50-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:38:09.760Z to 2026-09-09T23:38:09.760Z Record version: sha256:36696b8adebbe7e6c9c1d64260492f2fd74fa4fc173c501eff167413dfa08ed8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For each period for which a statement of financial position is presented, an NFP shall disclose the aggregate carrying amount of investments by major types, for example, equity securities, U.S. Treasury securities, corporate debt securities, mortgage-backed securities, oil and gas properties, and real estate. ##### [320-958-50-3](https://asc.understandingaccounting.org/asc/320/958/#320-958-50-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:38:09.760Z to 2026-09-09T23:38:09.760Z Record version: sha256:ebe9371aea62a8b010f620740f3911b3709b525c61cf1dca722dee346352595b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For the most recent period for which a statement of financial position is presented, an NFP shall disclose the nature of and carrying amount for each individual investment or group of investments that represents a significant concentration of market risk, such as risks that result from the nature of the investments or from a lack of diversity of industry, currency, or geographic location. ##### [320-958-50-4](https://asc.understandingaccounting.org/asc/320/958/#320-958-50-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:38:09.760Z to 2026-09-09T23:38:09.760Z Record version: sha256:37370968d228676a869792599a4f85846de32edd9bee5218d3afc0ffade4eb07 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph [825-10-50-21](https://asc.understandingaccounting.org/asc/825/10/#825-10-50-21) requires disclosures about all significant concentrations of credit risk arising from all financial instruments, (including significant concentrations of credit risk arising from derivative instruments accounted for under Topic 815), whether from an individual counterparty or groups of counterparties. ##### [320-958-50-5](https://asc.understandingaccounting.org/asc/320/958/#320-958-50-5) Pending content: no Source downloaded (UTC): 2026-09-09T23:38:09.760Z to 2026-09-09T23:38:09.760Z Record version: sha256:38894470a70b1447af669c020b9a7f8732269941e10e9e2353456274f751f730 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Information about realized and unrealized gains and losses and about historical costs of investments may be useful in some circumstances. For example, if a state adopted a law that allows an NFP to spend only realized gains or if an NFP pays taxes on realized gains and losses, information that distinguishes between realized and unrealized amounts may be useful. Thus, this Subtopic does not preclude disclosing that information. Source downloaded (UTC): 2026-09-09T23:38:12.012Z to 2026-09-09T23:38:12.012Z Record version: sha256:ec8023c0825d4c4ef3d6c382a3fcdbb3488d318a8aec8ee059beebb44eca4293 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 320-958-55: 55 Implementation Guidance and Illustrations [Read section](https://asc.understandingaccounting.org/asc/320/958/#55-implementation-guidance-and-illustrations) SEC content: no #### Implementation Guidance ##### [320-958-55-1](https://asc.understandingaccounting.org/asc/320/958/#320-958-55-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:38:12.012Z to 2026-09-09T23:38:12.012Z Record version: sha256:b1d03348beb5da357fbffd0cd707a51b8b6d54eb6ff103d62f3f447f04d9ca2b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The term _debt security_ includes any [security](https://asc.understandingaccounting.org/glossary/s/#security "A share, participation, or other interest in property or in an entity of the issuer or an obligation of the issuer that has all of the following characteristics: It is either represented by an instrument issued in bearer or registered form or, if not represented by an instrument, is registered in books maintained to record transfers by or on behalf of the issuer. It is of a type commonly dealt in on securities exchanges or markets or, when represented by an instrument, is commonly recognized in any area in which it is issued or dealt in as a medium for investment. It either is one of a class or series or by its terms is divisible into a class or series of shares, participations, interests, or obligations.") 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. ##### [320-958-55-2](https://asc.understandingaccounting.org/asc/320/958/#320-958-55-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:38:12.012Z to 2026-09-09T23:38:12.012Z Record version: sha256:785d69e1984e347b74d9ff3e7cf90a4d42655e1409b82d0b4fe601b99e49d3b6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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](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). 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](https://asc.understandingaccounting.org/asc/320/10/#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. ##### [320-958-55-3](https://asc.understandingaccounting.org/asc/320/958/#320-958-55-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:38:12.012Z to 2026-09-09T23:38:12.012Z Record version: sha256:4a75fa9f2b011554d12e1bc20fbd3c5d3c75e332e917caeea52001a0f73de1a8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). #### Illustrations ##### [320-958-55-4](https://asc.understandingaccounting.org/asc/320/958/#320-958-55-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:38:12.012Z to 2026-09-09T23:38:12.012Z Record version: sha256:3985f3fd1ec1fa1ab898684e3f25bd07b089cc6373bda0bbf882b5dbb2c0ab95 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Example illustrates the disclosures required by paragraph [958-320-50-2](https://asc.understandingaccounting.org/asc/320/958/#320-958-50-2) and a statement of activities that reports investment return in accordance with paragraphs [958-220-45-22 through 45-26](https://asc.understandingaccounting.org/asc/220/958/#220-958-45-22) . ##### [320-958-55-5](https://asc.understandingaccounting.org/asc/320/958/#320-958-55-5) Pending content: no Source downloaded (UTC): 2026-09-09T23:38:12.012Z to 2026-09-09T23:38:12.012Z Record version: sha256:a7e2de4174e489f950b03270ac51a11542ecce6e36ecdbf66b8e72aacec0cc98 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-14](https://asc.understandingaccounting.org/updates/asu-2016-14/). ##### [320-958-55-6](https://asc.understandingaccounting.org/asc/320/958/#320-958-55-6) Pending content: no Source downloaded (UTC): 2026-09-09T23:38:12.012Z to 2026-09-09T23:38:12.012Z Record version: sha256:582c78979a639d9a9a58153c4d84265d6cd10e26c96794e605e59de22be338f7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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](https://asc.understandingaccounting.org/updates/asu-2016-14/). 5. e NFP A released from restrictions the full amount of [net assets with donor restrictions](https://asc.understandingaccounting.org/glossary/n/#net-assets-with-donor-restrictions "The part of net assets of a not-for-profit entity that is subject to donor-imposed restrictions (donors include other types of contributors, including makers of certain grants).") that were appropriated from the [donor-restricted endowment fund](https://asc.understandingaccounting.org/glossary/d/#donor-restricted-endowment-fund "An endowment fund that is created by a donor stipulation (donors include other types of contributors, including makers of certain grants) requiring investment of the gift in perpetuity or for a specified term. Some donors or laws may require that a portion of income, gains, or both be added to the gift and invested subject to similar restrictions. The term does not include a Board-Designated Endowment Fund. See 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](https://asc.understandingaccounting.org/glossary/p/#programmatic-investing "The activity of making loans or other investments that are directed at carrying out a not-for-profit entity's purpose for existence rather than investing in the general production of income or appreciation of an asset (for example, total return investing). An example of programmatic investing is a loan made to lower-income individuals to promote home ownership.") income. The expenses related to the programmatic activity are included in operating expenses. ##### [320-958-55-7](https://asc.understandingaccounting.org/asc/320/958/#320-958-55-7) Pending content: no Source downloaded (UTC): 2026-09-09T23:38:12.012Z to 2026-09-09T23:38:12.012Z Record version: sha256:2e8a3950c8f19ce7fb64562309e72694c3d1b0146cb4f5e40cd47748012b5d4e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A statement of activities of NFP A is illustrated as follows. - ![ ](https://asc.understandingaccounting.org/asc-img/GUID-FDF423DA-945E-4045-975D-BC9B113A1445-low.gif) Not-for-Profit Entity A Statement of Activities "Year Ended June 30, 20X1" Without Donor Restrictions With Donor Restrictions Total "Revenues, gains, and other support:" Contributions " $X,XXX " " $ X,XXX " " $XX,XXX " Investment return appropriated from short-term investments " 1,025 " Fees " X,XXX " " X,XXX " Programmatic investing return 25 Other XXX XXX Net assets released from restrictions Investment return appropriated and released for current operations from donor-restricted endowment " 4,500 " " (4,500)" \[Other net assets released from restrictions\] " X,XXX " " (X,XXX) " "Total operating revenues, gains, and other support" " XX,XXX " " XX,XXX " Expenses: Program A " XX,XXX " Program B " X,XXX " Program C " X,XXX " Management and general " X,XXX " Fundraising " X,XXX " Total operating expenses " XX,XXX " Operating revenues in excess of expenses " XX,XXX " Other changes: "Investment return, net" " 1,275 " " 29,220 " " 30,495 " Investment return appropriated for current operations from short-term investments " (1,025)" \[Other items considered to be nonoperating\] " X,XXX " " X,XXX " " X,XXX " Change in net assets " $XX,XXX " " $ X,XXX " " $XX,XXX " ##### [320-958-55-8](https://asc.understandingaccounting.org/asc/320/958/#320-958-55-8) Pending content: no Source downloaded (UTC): 2026-09-09T23:38:12.012Z to 2026-09-09T23:38:12.012Z Record version: sha256:36682503ddfa4363831953d820c71450883fd2acf4a92809fd3943d8d58bd288 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. NFP A would add the following illustrative text to its note to financial statements that describes the measure of operations. - The board of trustees designates only a portion of NFP A's cumulative investment return for support of current operations; the remainder is retained to support operations of future years and to offset potential market declines. The amount computed and appropriated under the endowment spending policy of the investment pool and the amount appropriated from the investment return associated with the short-term investments are used to support current operations. ##### [320-958-55-9](https://asc.understandingaccounting.org/asc/320/958/#320-958-55-9) Pending content: no Source downloaded (UTC): 2026-09-09T23:38:12.012Z to 2026-09-09T23:38:12.012Z Record version: sha256:adc6bd159fa7ccc4edfcc0b7fd4a3d09cc16f2ae371f7a2cf898e758cacacc8a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-14](https://asc.understandingaccounting.org/updates/asu-2016-14/). ##### [320-958-55-10](https://asc.understandingaccounting.org/asc/320/958/#320-958-55-10) Pending content: no Source downloaded (UTC): 2026-09-09T23:38:12.012Z to 2026-09-09T23:38:12.012Z Record version: sha256:618e781e4b114a713e5d5bcb51090cb3e1fd9bb7604a71e1962e769d1f68cb3e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-14](https://asc.understandingaccounting.org/updates/asu-2016-14/). ##### [320-958-55-11](https://asc.understandingaccounting.org/asc/320/958/#320-958-55-11) Pending content: no Source downloaded (UTC): 2026-09-09T23:38:12.012Z to 2026-09-09T23:38:12.012Z Record version: sha256:3dbbce29f27681ee8f210f6aee2d6bf06bc2219ddc5454a5cc146b3e47c33dbf Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In accordance with the requirements in paragraph [958-320-50-2](https://asc.understandingaccounting.org/asc/320/958/#320-958-50-2), 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. - ![ ](https://asc.understandingaccounting.org/asc-img/GUID-175C1D3F-6728-4C51-B416-6560A0866840-low.gif) 20X1 Quoted Prices in Active Markets Significant Other Observable Inputs Significant Unobservable Inputs Measured at Net Asset Value (Level I) (Level II) (Level III) 20X1 Total Investments Cash equivalents held by investment managers " $19,366 " " $19,366 " U.S. common and preferred stocks " 61,190 " " 61,190 " International common and preferred stocks " 71,973 " " 71,973 " Fixed income " $40,920 " " 40,920 " Equity funds " 20,210 " " $10,093 " " $10,068 " " 40,371 " - Hedge funds " 26,248 " " 26,248 " - Private equity " 39,090 " " 39,090 " - Real estate " 33,520 " " 33,520 " Pooled endowment Pooled endowment " 172,739 " " 40,920 " " 43,613 " " 75,406 " " 332,678 " Split-interest agreements U.S. common and preferred stocks " 12,970 " " 12,970 " Fixed income " 6,635 " " 6,635 " Total investments " $185,709 " " $47,555 " " $43,613 " " $75,406 " " $352,283 " Source downloaded (UTC): 2026-09-09T23:38:15.825Z to 2026-09-09T23:38:15.825Z Record version: sha256:ef316feac46332e711a9d0dfad2b2b9a6d303814a913549015db7b00f5195a29 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 320-958-60: 60 Relationships [Read section](https://asc.understandingaccounting.org/asc/320/958/#60-relationships) SEC content: no ##### [320-958-60-1](https://asc.understandingaccounting.org/asc/320/958/#320-958-60-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:38:15.825Z to 2026-09-09T23:38:15.825Z Record version: sha256:380672d175b64d90fd4a8881b3476b3aec111c78c5aa0553c3bd185267886bb1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2022-02](https://asc.understandingaccounting.org/updates/asu-2022-02/). #### Derivatives and Hedging ##### [320-958-60-2](https://asc.understandingaccounting.org/asc/320/958/#320-958-60-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:38:15.825Z to 2026-09-09T23:38:15.825Z Record version: sha256:49ad8ab2cd8294af0d8ea48a920cb1afaedd92b0c95e06707cea38f4b6ab6627 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For guidance on recognition by an NFP of the gain or loss on a hedging instrument or a nonhedging derivative instrument, see paragraphs [815-25-35-19](https://asc.understandingaccounting.org/asc/815/25/#815-25-35-19) and [815-10-35-3](https://asc.understandingaccounting.org/asc/815/10/#815-10-35-3), respectively.