# ASC 360-958-35: Property, Plant, and Equipment — Not-for-Profit Entities — 35 Subsequent Measurement Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/360/958/#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): 2026-09-10T00:10:50.672Z to 2026-09-10T00:10:50.672Z Record version: sha256:5b466d61dbf6bd7d18668700bb49a7685270d3a7166fa90b931ed28c70bc1d72 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 360-958-35: 35 Subsequent Measurement [Read section](https://asc.understandingaccounting.org/asc/360/958/#35-subsequent-measurement) SEC content: no #### Depreciation ##### [360-958-35-1](https://asc.understandingaccounting.org/asc/360/958/#360-958-35-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:10:50.672Z to 2026-09-10T00:10:50.672Z Record version: sha256:f6de699e43d5a823ceecba2cdef2b0dc0823b88d1fb3007bf43432454ced8530 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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) shall recognize the cost of using up the future economic benefits or service potentials of its long-lived tangible assets—depreciation. ##### [360-958-35-2](https://asc.understandingaccounting.org/asc/360/958/#360-958-35-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:10:50.672Z to 2026-09-10T00:10:50.672Z Record version: sha256:ab20a3ccd9d76f338817c7fccc18db9c2401cf8fe0d7e79c45790e9662f126fd Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The process of using up the future economic benefit or service potential of land often takes place over a period so long that its occurrence is imperceptible—land used as a building site is perhaps the most common example. In contrast, however, that process also sometimes occurs much more rapidly—land used as a site for toxic waste, as a source of gravel or ore, or for farming under conditions in which fertility dissipates relatively quickly and cannot be restored economically are examples. ##### [360-958-35-3](https://asc.understandingaccounting.org/asc/360/958/#360-958-35-3) Pending content: no Source downloaded (UTC): 2026-09-10T00:10:50.672Z to 2026-09-10T00:10:50.672Z Record version: sha256:993c7c9059aed95592cba60b3115acf351685e96788282f92ef1fe1de1bb3958 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Consistent with the accepted practice for land used as a building site, depreciation need not be recognized on an individual work of art or historical treasure whose economic benefit or service potential is used up so slowly that its estimated useful life is extraordinarily long. A work of art or historical treasure shall be deemed to have that characteristic only if verifiable evidence exists demonstrating both of the following characteristics: 1. a The asset individually has cultural, aesthetic, or historical value that is worth preserving perpetually. 2. b The holder has the technological and financial ability to protect and preserve essentially undiminished the service potential of the asset and is doing that. ##### [360-958-35-4](https://asc.understandingaccounting.org/asc/360/958/#360-958-35-4) Pending content: no Source downloaded (UTC): 2026-09-10T00:10:50.672Z to 2026-09-10T00:10:50.672Z Record version: sha256:eb00d408c6a8e18e9452a092f51319eec97e290a0b717003c13fa7a0ab968ef3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A recognized cultural, aesthetic, or historical value and, generally, an already long existence have established each work of art or historical treasure as a member of a group of rare works with that characteristic. Most of them are acquired by purchase, gift, or discovery with that characteristic already having been demonstrated, and the holder or acquirer usually takes steps to protect and preserve it, for example, by keeping a work of art in a protective environment and limiting its use solely to display. While that characteristic is not limited to assets with an already long existence, an asset that has come into existence relatively recently cannot be assumed to have it in the absence of the verifiable evidence described in the preceding paragraph. For example, to put a painting in a protective environment is not by itself evidence of cultural, aesthetic, or historical value that is worth preserving perpetually. ##### [360-958-35-5](https://asc.understandingaccounting.org/asc/360/958/#360-958-35-5) Pending content: no Source downloaded (UTC): 2026-09-10T00:10:50.672Z to 2026-09-10T00:10:50.672Z Record version: sha256:c8fd2156c1e4de125ef482e9e51dca3bb0f11797d7c9bd98adf0bea8a5465f70 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The future economic benefits or service potentials of individual items comprising [collections](https://asc.understandingaccounting.org/glossary/c/#collections "Works of art, historical treasures, or similar assets that meet all of the following criteria: They are held for public exhibition, education, or research in furtherance of public service rather than financial gain. They are protected, kept unencumbered, cared for, and preserved. They are subject to an organizational policy that requires the use of proceeds from items that are sold to be for the acquisitions of new collection items, the direct care of existing collections, or both. Collections generally are held by museums; botanical gardens; libraries; aquariums; arboretums; historic sites; planetariums; zoos; art galleries; nature, science, and technology centers; and similar educational, research, and public service organizations that have those divisions; however, the definition is not limited to those entities nor does it apply to all items held by those entities.") (as that term is commonly used, not necessarily as defined within this Subtopic) and of buildings and other structures—including those designated as landmarks, monuments, cathedrals, or historical treasures—are used up not only by wear and tear in intended uses but also by the continuous destructive effects of pollutants, vibrations, and so forth. The cultural, aesthetic, or historical values of those assets can be preserved, if at all, only by periodic major efforts to protect, clean, and restore them, usually at significant cost. Thus, depreciation of those assets shall be recognized. ##### [360-958-35-6](https://asc.understandingaccounting.org/asc/360/958/#360-958-35-6) Pending content: no Source downloaded (UTC): 2026-09-10T00:10:50.672Z to 2026-09-10T00:10:50.672Z Record version: sha256:0c2745e589046cc60ca7ca31d1c6dbb24d755d165759fb575c211f2a47f93281 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Depreciation shall be recognized on any capitalized costs of major preservation or restoration devices or efforts, which provide future economic benefits or service potentials until the next expected preservation or restoration, regardless of whether depreciation is recognized on the asset being protected or restored. ##### [360-958-35-7](https://asc.understandingaccounting.org/asc/360/958/#360-958-35-7) Pending content: no Source downloaded (UTC): 2026-09-10T00:10:50.672Z to 2026-09-10T00:10:50.672Z Record version: sha256:53d5e8412aff79493a1d52df87af1636cf517061cf2cd300a559814139b5b0f5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The terms of certain grants and reimbursements from other entities may specify whether depreciation or the entire cost of the asset in the year of acquisition should be included as a cost of activities associated with those grants or reimbursements for contractual purposes (sometimes referred to as allowable costs). Those terms shall not affect the recognition and measurement of depreciation for financial reporting purposes. #### Impairment ##### [360-958-35-8](https://asc.understandingaccounting.org/asc/360/958/#360-958-35-8) Pending content: no Source downloaded (UTC): 2026-09-10T00:10:50.672Z to 2026-09-10T00:10:50.672Z Record version: sha256:ff7303809d721819458cde11ec5e6a254cc366244e26d4bf72fcc05eb9604a36 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. When grouping assets for impairment testing as described in paragraphs [360-10-35-23 through 35-28](https://asc.understandingaccounting.org/asc/360/10/#360-10-35-23) , an NFP that relies in part on [contributions](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.") to maintain its assets may need to consider those contributions in determining the appropriate cash flows to compare with the carrying amount of an asset. If future contributions without donor restrictions to the entity as a whole are not considered, the sum of the expected future cash flows may be negative or positive but less than the carrying amount of the asset. For example, the costs of administering a museum may exceed the admission fees charged, but the museum may fund the cash flow deficit with contributions without donor restrictions.