# ASC 325-958-35: Investments—Other — Not-for-Profit Entities — 35 Subsequent Measurement Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/325/958/#35-subsequent-measurement) 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): 2026-09-09T23:47:29.778Z to 2026-09-09T23:47:29.778Z Record version: sha256:48cef908e6e7859e153169156655cb688b0e694c6bacd1daef54eedb526dde62 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 325-958-35: 35 Subsequent Measurement [Read section](https://asc.understandingaccounting.org/asc/325/958/#35-subsequent-measurement) SEC content: no #### Institutions of Higher Education ##### [325-958-35-1](https://asc.understandingaccounting.org/asc/325/958/#325-958-35-1) Pending content: yes Source downloaded (UTC): 2026-09-09T23:47:29.778Z to 2026-09-09T23:47:29.778Z Record version: sha256:6be6fbc1a4b1b55a42beebc11b7bd51affdfd2f1766a3917b14174af307a5b7d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Institutions of higher education, including colleges, universities, and community or junior colleges, shall subsequently report other investments at either of the following measures: 1. a Carrying value—that is, those that were acquired by purchase are reported at cost, and those that were contributed are reported at their [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.") at the date of the gift. However, the carrying value shall be reduced by an allowance for credit losses (if applicable) under Topic 326. 2. b Fair value. Transition date:(P) December 16, 2026; (N) December 16, 2026Transition guidance: [105-10-65-10](https://asc.understandingaccounting.org/asc/105/10/#105-10-65-10)Institutions of higher education, including colleges, universities, and community or junior colleges, shall subsequently report other investments at either of the following measures: 1. a Carrying value—that is, those that were acquired by purchase are reported at cost, and those that were contributed are reported at their [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.") at the date of the gift. If an asset is subject to the impairment provisions of other generally accepted accounting principles (GAAP), the carrying value shall be reduced in accordance with the guidance in the applicable Subtopic. An allowance for credit losses shall be recognized (if applicable) for financial assets subject to the guidance in Topic 326. 2. b Fair value. ##### [325-958-35-2](https://asc.understandingaccounting.org/asc/325/958/#325-958-35-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:47:29.778Z to 2026-09-09T23:47:29.778Z Record version: sha256:a27ee3dd4a99f199c99de88c39141930151955b395d1679f9f386d59434b0a3f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The same measurement attribute shall be used for all other investments excluding those for which the institution chose, at a specified election date, to measure at fair value pursuant to Section 815-15-25 or to the Fair Value Option Subsections of Subtopic 825-10. Investments in wasting assets are usually reported net of an allowance for depreciation or depletion. #### Voluntary Health and Welfare Entities ##### [325-958-35-3](https://asc.understandingaccounting.org/asc/325/958/#325-958-35-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:47:29.778Z to 2026-09-09T23:47:29.778Z Record version: sha256:3682b094b10008b2f1be9413f8496207100dfe072e29a67e3a0f4667065881b4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Voluntary health and welfare entities shall subsequently report other investments at either of the following measures: 1. a Carrying value—that is, cost if purchased and fair value at the date of the [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.") if contributed 2. b Fair value. ##### [325-958-35-4](https://asc.understandingaccounting.org/asc/325/958/#325-958-35-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:47:29.778Z to 2026-09-09T23:47:29.778Z Record version: sha256:923c12c5f89cdd8c849e338b6f3db9a9586fe87c21a7c067ead67e1f3fa66412 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The same measurement attribute shall be used for all other investments excluding those for which the [voluntary health and welfare entity](https://asc.understandingaccounting.org/glossary/v/#voluntary-health-and-welfare-entity "A not-for-profit entity (NFP) that is formed for the purpose of performing voluntary services for various segments of society and that is tax exempt (organized for the benefit of the public), supported by the public, and operated on a not-for-profit basis. Most voluntary health and welfare entities concentrate their efforts and expend their resources in an attempt to solve health and welfare problems of our society and, in many cases, those of specific individuals. As a group, voluntary health and welfare entities include those NFPs that derive their revenue primarily from voluntary contributions from the general public to be used for general or specific purposes connected with health, welfare, or community services. For purposes of this definition, the general public excludes governmental entities when determining whether an NFP is a voluntary health and welfare entity.") chose, at a specified election date, to measure at fair value pursuant to Section 815-15-25 or the Fair Value Option Subsections of Subtopic 825-10. ##### [325-958-35-5](https://asc.understandingaccounting.org/asc/325/958/#325-958-35-5) Pending content: yes Source downloaded (UTC): 2026-09-09T23:47:29.778Z to 2026-09-09T23:47:29.778Z Record version: sha256:77fcfdc421f08c7a43c0eaf3837d940633f5d5b4a814d5bcb5ca0d5b2d60e541 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If other investments are not equity securities and the fair value of the portfolio of those investments is below the recorded amount, it may be necessary to reduce the carrying amount of the portfolio to fair value or to provide an allowance for decline in fair value. If it can reasonably be expected that the voluntary health and welfare entity will suffer a loss on the disposition of an investment, an impairment loss shall be recognized in the period in which the decline in fair value occurs. Transition date:(P) December 16, 2026; (N) December 16, 2026Transition guidance: [105-10-65-10](https://asc.understandingaccounting.org/asc/105/10/#105-10-65-10)If the fair value of the portfolio of other investments is below the recorded amount, it may be necessary to reduce the carrying amount of the portfolio to fair value or to provide an allowance for decline in fair value. If it can reasonably be expected that the voluntary health and welfare entity will suffer a loss on the disposition of an investment, an impairment loss shall be recognized in the period in which the decline in fair value occurs. #### Health Care Entities ##### [325-958-35-5A](https://asc.understandingaccounting.org/asc/325/958/#325-958-35-5A) Pending content: no Source downloaded (UTC): 2026-09-09T23:47:29.778Z to 2026-09-09T23:47:29.778Z Record version: sha256:e495b197db328a9c527843d013f5e4a6893f2263cbdaacd4b946cde6262b72c8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Not-for-profit, business-oriented health care entities shall apply the guidance in Section 954-325-35. #### Other Not-for-Profit Entities ##### [325-958-35-6](https://asc.understandingaccounting.org/asc/325/958/#325-958-35-6) Pending content: no Source downloaded (UTC): 2026-09-09T23:47:29.778Z to 2026-09-09T23:47:29.778Z Record version: sha256:6bb18cef08dcd1baad04f2979210aa3049543eca1ad3d7dbca2cc47fedddce3d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [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) that are not colleges, universities, voluntary health and welfare entities, or health care entities (see paragraph [958-10-15-3](https://asc.understandingaccounting.org/asc/958/10/#958-10-15-3)) shall report other investments using one of the following measures: 1. a Fair value 2. b The lower of cost or fair value. The same measurement attribute shall be used for all other investments excluding those for which the NFP chose, at a specified election date, to measure at fair value pursuant to Section 815-15-25 or the Fair Value Option Subsections of Subtopic 825-10. ##### [325-958-35-7](https://asc.understandingaccounting.org/asc/325/958/#325-958-35-7) Pending content: yes Source downloaded (UTC): 2026-09-09T23:47:29.778Z to 2026-09-09T23:47:29.778Z Record version: sha256:519f8f2ffe3e10c7304cd41fecf3f2dcfb0e7c0986c55ac014569d970cf2a7e6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If other investments are not equity securities and are carried at the lower of cost or fair value, declines in the value of those investments shall be recognized if their aggregate fair value is less than their carrying amount; recoveries of aggregate fair value in subsequent periods shall be recorded in those periods subject only to the limitation that the carrying amount shall not exceed the original cost. Transition date:(P) December 16, 2026; (N) December 16, 2026Transition guidance: [105-10-65-10](https://asc.understandingaccounting.org/asc/105/10/#105-10-65-10)If other investments are carried at the lower of cost or fair value, declines in the value of those investments shall be recognized if their aggregate fair value is less than their carrying amount; recoveries of aggregate fair value in subsequent periods shall be recorded in those periods subject only to the limitation that the carrying amount shall not exceed the original cost. ##### [325-958-35-8](https://asc.understandingaccounting.org/asc/325/958/#325-958-35-8) Pending content: no Source downloaded (UTC): 2026-09-09T23:47:29.778Z to 2026-09-09T23:47:29.778Z Record version: sha256:7f1a2eb362e2f0f21093341fcfff57278283bac3c989f016d556c74d920cc8df 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/). ##### [325-958-35-9](https://asc.understandingaccounting.org/asc/325/958/#325-958-35-9) Pending content: no Source downloaded (UTC): 2026-09-09T23:47:29.778Z to 2026-09-09T23:47:29.778Z Record version: sha256:eee378b1dab687b116c1917e9a44e278c16e7e4481bed9c3f2817f8125ccf5bc 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/). ##### [325-958-35-10](https://asc.understandingaccounting.org/asc/325/958/#325-958-35-10) Pending content: no Source downloaded (UTC): 2026-09-09T23:47:29.778Z to 2026-09-09T23:47:29.778Z Record version: sha256:2b18f71b711da991856467470dc7a9632cd7c002cac09670ea28bdb73074db86 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/). ##### [325-958-35-11](https://asc.understandingaccounting.org/asc/325/958/#325-958-35-11) Pending content: no Source downloaded (UTC): 2026-09-09T23:47:29.778Z to 2026-09-09T23:47:29.778Z Record version: sha256:ef2c51f5e5e531fef211dd0cd765aa268eb2f223c45e5d7f715e5751fa554bfc 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/). ##### [325-958-35-12](https://asc.understandingaccounting.org/asc/325/958/#325-958-35-12) Pending content: no Source downloaded (UTC): 2026-09-09T23:47:29.778Z to 2026-09-09T23:47:29.778Z Record version: sha256:5ff51a8fb8e6b1475db78a2fd8723d005870dfca73f416a5bd5608ff41465281 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/). ##### [325-958-35-13](https://asc.understandingaccounting.org/asc/325/958/#325-958-35-13) Pending content: no Source downloaded (UTC): 2026-09-09T23:47:29.778Z to 2026-09-09T23:47:29.778Z Record version: sha256:51d5d4e2a2f2c79499a0754b4371e68a3d3dcc451a6570b2021282569e16db58 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/). ##### [325-958-35-14](https://asc.understandingaccounting.org/asc/325/958/#325-958-35-14) Pending content: no Source downloaded (UTC): 2026-09-09T23:47:29.778Z to 2026-09-09T23:47:29.778Z Record version: sha256:a1cae2646ecca92aa345202ff8f5a928bbffe58fe2e6b648fec3a18f99a4e7a8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph not used](https://asc.understandingaccounting.org/updates/page-1833002/). ##### [325-958-35-15](https://asc.understandingaccounting.org/asc/325/958/#325-958-35-15) Pending content: no Source downloaded (UTC): 2026-09-09T23:47:29.778Z to 2026-09-09T23:47:29.778Z Record version: sha256:36ca71bf3b77d576c3c4649daf3a8d26f500c5e176421cf751a30752a2b0a99a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph not used](https://asc.understandingaccounting.org/updates/page-1833002/). #### All Not-for-Profit Entities ##### [325-958-35-16](https://asc.understandingaccounting.org/asc/325/958/#325-958-35-16) Pending content: no Source downloaded (UTC): 2026-09-09T23:47:29.778Z to 2026-09-09T23:47:29.778Z Record version: sha256:54311163a4a8facdbd7cd34769ce9233537338dd42214272b609f1ffa28b5b11 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If an 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. See paragraphs [958-605-25-23 through 25-24](https://asc.understandingaccounting.org/asc/605/958/#605-958-25-23) for additional guidance.