{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/470/958/","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.","number":"470-958","topic":"470","title":"Not-for-Profit Entities","area":"Liabilities","paragraphs":4,"summary":"This subtopic addresses how a not-for-profit entity accounts for debt, in particular conduit financing obtained through state and local financing authorities. The core rule is that because the NFP is responsible for repaying tax-exempt bonds or other obligations issued on its behalf, the NFP recognizes that financing as a liability on its statement of financial position (470-958-25-1). 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class=\"entry\"><strong class=\"ph b\">Date</strong></td></tr><tr><td class=\"entry\"></td><td class=\"entry\"></td><td class=\"entry\"></td><td class=\"entry\"></td></tr><tr><td class=\"entry\"><a href=\"/asc/470/958/#470-958-05-1\" class=\"xref\">958-470-05-1</a></td><td class=\"entry\">Amended</td><td class=\"entry\"><a href=\"/updates/asu-2012-04/\" class=\"xref\">Accounting Standards Update No. 2012-04</a></td><td class=\"entry\">10/01/2012</td></tr></table></div></div>","snippet":"The following table identifies the changes made to this Subtopic.\nParagraph | Action | Accounting Standards Update | Date |\n| | | |\n958-470-05-1 | Amended | Accounting Standards Update No. 2012-04 | 10/01/2012 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same Scope and Scope Exceptions as outlined in the Overall Subtopic (see Section <a altsource=\"GUID-0DD748A2-DAEB-4A20-B494-CB4C774CFCAE.ditamap\" class=\"ditamap\">958-10-15</a>).</div></div>","snippet":"This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic (see Section 958-10-15).","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:880c1a52098e5fd3745f6ba62aef64247d6fe0d4e8be9b5481882d4534f5c31d","downloaded_from":"2026-09-10T00:34:56.927Z","last_downloaded_at":"2026-09-10T00:34:56.927Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval 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id=\"sfr_37D3FDD5-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">A not-for-profit entity (NFP) may finance part of its activities from the proceeds of tax-exempt bonds or other obligations issued through state and local financing authorities. Because the NFP is responsible for the repayment of those obligations, that financing shall be recognized as a liability in its statement of financial position. </span></span></div></div>","snippet":"A not-for-profit entity (NFP) may finance part of its activities from the proceeds of tax-exempt bonds or other obligations issued through state and local financing authorities. Because the NFP is responsible for the rep…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ff84aec36c9abc907a3620fdc24070cfbedb7be1adb6fe6d898c2c0be40d1b23","downloaded_from":"2026-09-10T00:34:59.299Z","last_downloaded_at":"2026-09-10T00:34:59.299Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478694","source_sha256":"f9223b0ea30f2e543f5e8077afbcd12a05c244a89a3b1f4a341538307a2cf57c"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d545c9c2f7b3dc7a078d7a82779dcaaf2148d4d1e52a405dbf1bbbb3f8ac387e","downloaded_from":"2026-09-10T00:34:59.299Z","last_downloaded_at":"2026-09-10T00:34:59.299Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478694","source_sha256":"f9223b0ea30f2e543f5e8077afbcd12a05c244a89a3b1f4a341538307a2cf57c"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:6247bbca6159865072a1e6922ab05c56054c49a2433fb98679f726b53d3d6d84","downloaded_from":"2026-09-10T00:34:59.299Z","last_downloaded_at":"2026-09-10T00:34:59.299Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478694","source_sha256":"f9223b0ea30f2e543f5e8077afbcd12a05c244a89a3b1f4a341538307a2cf57c"}}],"enrichment":{"summary":"This subtopic addresses how a not-for-profit entity accounts for debt, in particular conduit financing obtained through state and local financing authorities. The core rule is that because the NFP is responsible for repaying tax-exempt bonds or other obligations issued on its behalf, the NFP recognizes that financing as a liability on its statement of financial position (470-958-25-1). Scope follows the NFP Overall Subtopic scope in Section 958-10-15.","key_points":["This Subtopic gives debt guidance for not-for-profit entities within the scope of Topic 470 (470-958-05-1).","Scope and scope exceptions are the same as those in the Not-for-Profit Entities Overall Subtopic, Section 958-10-15 (470-958-15-1).","An NFP may finance part of its activities with proceeds of tax-exempt bonds or other obligations issued through state and local financing authorities (470-958-25-1).","Because the NFP is responsible for repayment of those obligations, the financing must be recognized as a liability in the NFP's statement of financial position (470-958-25-1).","The fact that the bonds are legally issued by a governmental financing authority does not keep the obligation off the NFP's statement of financial position."],"categories":["Recognition","Not-for-profit","Debt and equity","Presentation"],"audience_level":"introductory","student_note":"Short but testable: students often assume that because a governmental authority is the nominal issuer of tax-exempt (conduit) bonds, the NFP borrower reports nothing—wrong; repayment responsibility drives liability recognition by the NFP.","related_topics":["958-10","958-210","470-10","470-20","235-10"],"key_concepts":["not-for-profit entity","tax-exempt bond financing","conduit debt obligation","state and local financing authority","liability recognition","statement of financial position"],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:bf772a4ec2c03124f6be44b99a948f58b56ee5493f1bbecb5fb179bbc64045d3","downloaded_from":"2026-09-10T00:34:51.743Z","last_downloaded_at":"2026-09-10T00:34:59.299Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},"related":[{"number":"405-958","title":"Not-for-Profit Entities","topic_title":"Liabilities","score":0.8032,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:cd8213062ca677f7357a48c3cc6f39875ffbc345d181db23dbb28c2e47c50898","downloaded_from":"2026-09-10T00:19:40.959Z","last_downloaded_at":"2026-09-10T00:20:08.319Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"450-958","title":"Not-for-Profit Entities","topic_title":"Contingencies","score":0.7725,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c3d2284e2371b96862754c0fdab5fcfd77984e406b41ee869ed4065136919117","downloaded_from":"2026-09-10T00:28:58.769Z","last_downloaded_at":"2026-09-10T00:29:12.159Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"470-954","title":"Health Care Entities","topic_title":"Debt","score":0.7401,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:77179fe5ca5ad92f88df478b43fcb0911b8535ed488f8ca0da1d732d9b8d9ff4","downloaded_from":"2026-09-10T00:34:33.725Z","last_downloaded_at":"2026-09-10T00:34:48.558Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"320-958","title":"Not-for-Profit Entities","topic_title":"Investments—Debt Securities","score":0.7284,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:42611084527ca71ea82e189b8f774a0d700162ab4730863d1de091d753b1b72d","downloaded_from":"2026-09-09T23:37:46.933Z","last_downloaded_at":"2026-09-09T23:38:15.825Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"958-10","title":"Overall","topic_title":"Not-for-Profit Entities","score":0.7205,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:cb8baef8b58cf5fa87a68257333bfae85780453980aa50d1fa2f3e8f78e6bfd2","downloaded_from":"2026-09-10T02:21:08.558Z","last_downloaded_at":"2026-09-10T02:21:26.859Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"470-980","title":"Regulated Operations","topic_title":"Debt","score":0.6961,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:6ca2f23bdaea6e217a5051ed7a24c32263f091f26d2ae0fe604a1ccb19c3ed69","downloaded_from":"2026-09-10T00:35:14.586Z","last_downloaded_at":"2026-09-10T00:35:24.744Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}}],"prev":{"number":"470-954","title":"Health Care 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