# ASC 325-958-05: Investments—Other — Not-for-Profit Entities — 05 Overview and Background

Source: FASB Accounting Standards Codification, Basic View

[Read online](https://asc.understandingaccounting.org/asc/325/958/#05-overview-and-background)

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## ASC 325-958-05: 05 Overview and Background

[Read section](https://asc.understandingaccounting.org/asc/325/958/#05-overview-and-background)

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##### [325-958-05-1](https://asc.understandingaccounting.org/asc/325/958/#325-958-05-1)

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The Not-for-Profit 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.

##### [325-958-05-2](https://asc.understandingaccounting.org/asc/325/958/#325-958-05-2)

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This Subtopic provides guidance for investments other than the following:

1.  a
    
    Equity securities
    
2.  b
    
    Debt securities
    
3.  c
    
    Investments in derivative instruments, including embedded derivatives, that are subject to the requirements of Topic 815
    
4.  d
    
    Investments in for-profit entities that are accounted for under the equity method
    
5.  e
    
    Investments in for-profit consolidated subsidiaries
    
6.  f
    
    Investments in not-for-profit consolidated subsidiaries
    
7.  g
    
    Investments held for the NFP 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.").
    

Thus, this Subtopic provides guidance for investments of the following types, among others, unless because of their characteristics they are included in the above list: investments in real estate, mortgage notes, and oil and gas interests.