{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/321/958/#05-overview-and-background","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":"321","topic_title":"Investments—Equity Securities","subtopic":"321-958","subtopic_title":"Not-for-Profit Entities","section":{"number":"05","label":"05 Overview and Background","anchor":"05-overview-and-background","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"321-958-05-1","para":"05-1","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_35248198-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The Not-for-Profit Entities Topic contains several Subtopics for investments held by <a href=\"/glossary/n/#not-for-profit-entity\" class=\"term\" title=\"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.\"><span>not-for-profit entities</span></a> (NFPs) because the guidance differs by form of the investment. The Subtopics are:</span></span><ol class=\"ol-norm\"><li class=\"li-norm\"><span class=\"linum\">a</span><div class=\"p\"><span class=\"sfragment\" id=\"sfr_3524827F-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Financially Interrelated Entities </span></span></div></li><li class=\"li-norm\"><span class=\"linum\">b</span><div class=\"p\"><span class=\"sfragment\" id=\"sfr_35248346-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Investments—Debt Securities </span></span></div></li><li class=\"li-norm\"><span class=\"linum\">c</span><div class=\"p\"><span class=\"sfragment\" id=\"sfr_352483FD-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Investments—Equity Securities </span></span></div></li><li class=\"li-norm\"><span class=\"linum\">d</span><div class=\"p\"><span class=\"sfragment\" id=\"sfr_352484D7-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Investments—Other </span></span></div></li><li class=\"li-norm\"><span class=\"linum\">e</span><div class=\"p\"><span class=\"sfragment\" id=\"sfr_352485BF-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Consolidation. </span></span></div></li></ol></div></div>","snippet":"The Not-for-Profit Entities Topic contains several Subtopics for investments held by not-for-profit entities (NFPs) because the guidance differs by form of the investment. The Subtopics are:\n(a) Financially Interrelated …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:fcdb9f7b99341d7a42f579a830bc27401209734e062d15e75ceb32914efb374e","downloaded_from":"2026-09-09T23:39:21.152Z","last_downloaded_at":"2026-09-09T23:39:21.152Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477930","source_sha256":"05bf4306bb12a3bbac4dca546559225962c73ffb1c3c696c1eb644a8c990c959"}},{"citation":"321-958-05-2","para":"05-2","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_35248672-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">This Subtopic establishes incremental standards of financial accounting and reporting for investments in <a href=\"/glossary/e/#equity-security\" class=\"term\" title=\"Any security representing an ownership interest in an entity (for example, common, preferred, or other capital stock) or the right to acquire (for example, warrants, rights, forward purchase contracts, and call options) or dispose of (for example, put options and forward sale contracts) an ownership interest in an entity at fixed or determinable prices. The term equity security does not include any of the following: Written equity options (because they represent obligations of the writer, not investments) Cash-settled options on equity securities or options on equity-based indexes (because those instruments do not represent ownership interests in an entity) Convertible debt or preferred stock that by its terms either must be redeemed by the issuing entity or is redeemable at the option of the investor.\"><span>equity securities</span></a> held by NFPs. Topic <a altsource=\"GUID-30D592DB-7A98-4C24-AB74-116B7CA90050.ditamap\" class=\"ditamap\">321</a> establishes standards of financial accounting and reporting for investments in equity securities and other ownership interests in an entity.</span></span></div></div>","snippet":"This Subtopic establishes incremental standards of financial accounting and reporting for investments in equity securities held by NFPs. Topic 321 establishes standards of financial accounting and reporting for investmen…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c14db6ddf67a53d6f60893357ff6bcf0e11864cb42f804871240cc26c8ca454e","downloaded_from":"2026-09-09T23:39:21.152Z","last_downloaded_at":"2026-09-09T23:39:21.152Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477930","source_sha256":"05bf4306bb12a3bbac4dca546559225962c73ffb1c3c696c1eb644a8c990c959"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f8be72c10c65cd60cc40a80f0aecfa21856627b1ef2b2526ed79a4a3ac288864","downloaded_from":"2026-09-09T23:39:21.152Z","last_downloaded_at":"2026-09-09T23:39:21.152Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477930","source_sha256":"05bf4306bb12a3bbac4dca546559225962c73ffb1c3c696c1eb644a8c990c959"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:6806cb80702a1176679003f4f90e865e915dbb3fe656c715be091ca1dc37cd14","downloaded_from":"2026-09-09T23:39:21.152Z","last_downloaded_at":"2026-09-09T23:39:21.152Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477930","source_sha256":"05bf4306bb12a3bbac4dca546559225962c73ffb1c3c696c1eb644a8c990c959"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:6806cb80702a1176679003f4f90e865e915dbb3fe656c715be091ca1dc37cd14","downloaded_from":"2026-09-09T23:39:21.152Z","last_downloaded_at":"2026-09-09T23:39:21.152Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477930","source_sha256":"05bf4306bb12a3bbac4dca546559225962c73ffb1c3c696c1eb644a8c990c959"}}