# ASC 720-958-30: Other Expenses — Not-for-Profit Entities — 30 Initial Measurement

Source: FASB Accounting Standards Codification, Basic View

[Read online](https://asc.understandingaccounting.org/asc/720/958/#30-initial-measurement)

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## ASC 720-958-30: 30 Initial Measurement

[Read section](https://asc.understandingaccounting.org/asc/720/958/#30-initial-measurement)

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#### Contributions Made

##### [720-958-30-1](https://asc.understandingaccounting.org/asc/720/958/#720-958-30-1)

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A liability and an expense recognized under paragraph [958-720-25-1](https://asc.understandingaccounting.org/asc/720/958/#720-958-25-1) shall be measured initially at [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.").

### Services Received from Personnel of an Affiliate

##### [720-958-30-2](https://asc.understandingaccounting.org/asc/720/958/#720-958-30-2)

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Services received from personnel of an [affiliate](https://asc.understandingaccounting.org/glossary/a/#affiliate "A party that, directly or indirectly through one or more intermediaries, controls, is controlled by, or is under common control with an entity. See Control.") that directly benefit the recipient [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) and for which the affiliate does not charge the recipient NFP shall be measured by the recipient NFP at the cost recognized by the affiliate in providing those services, except as provided in the following paragraph. Although the components of cost would depend on the nature and type of services provided and could vary from entity to entity, cost should include the direct personnel costs (for example, compensation and any payroll-related fringe benefits) incurred by the affiliate in providing the services to the recipient NFP.

##### [720-958-30-3](https://asc.understandingaccounting.org/asc/720/958/#720-958-30-3)

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If recording a service received from personnel of an affiliate at the cost recognized by the affiliate for the personnel providing that service will significantly overstate or understate the value of the service received, the recipient NFP may elect to recognize that service at either of the following:

1.  a
    
    The cost recognized by the affiliate for the personnel providing that service
    
2.  b
    
    The fair value of that service.