# ASC 805-958-15: Business Combinations — Not-for-Profit Entities — 15 Scope and Scope Exceptions Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/805/958/#15-scope-and-scope-exceptions) 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): 2026-09-10T01:27:48.912Z to 2026-09-10T01:27:48.912Z Record version: sha256:b9fe9ccf1263b49e1cb50ed8165b0b39fe85b981d5e7af7fe1cdadd4b621726d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 805-958-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/805/958/#15-scope-and-scope-exceptions) SEC content: no #### Overall Guidance ##### [805-958-15-1](https://asc.understandingaccounting.org/asc/805/958/#805-958-15-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:27:48.912Z to 2026-09-10T01:27:48.912Z Record version: sha256:24f849b1d2d4b90eefb66c239be3c4205b80a8a772e108a5bb33c5319c5b42d9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic follows the same scope and scope exceptions as the Overall Subtopic, see Section 958-10-15. ##### [805-958-15-2](https://asc.understandingaccounting.org/asc/805/958/#805-958-15-2) Pending content: no Source downloaded (UTC): 2026-09-10T01:27:48.912Z to 2026-09-10T01:27:48.912Z Record version: sha256:59eeda54ae598ddde3fd3ae4cf077cf7dca46f81da796a672b99d6d967aa355c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The General Subsection of this Section establishes the pervasive scope for this Subtopic. #### Transactions ##### [805-958-15-3](https://asc.understandingaccounting.org/asc/805/958/#805-958-15-3) Pending content: no Source downloaded (UTC): 2026-09-10T01:27:48.912Z to 2026-09-10T01:27:48.912Z Record version: sha256:bf307eb3551a700f60099bdf417896d16bd485a8c40ac63669f450b661295d90 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in this Subtopic applies to a transaction or other event that meets the definition of either of the following: 1. a A [merger of not-for-profit entities](https://asc.understandingaccounting.org/glossary/m/#merger-of-not-for-profit-entities "A transaction or other event in which the governing bodies of two or more not-for-profit entities cede control of those entities to create a new not-for-profit entity.") 2. b An [acquisition by a not-for-profit entity](https://asc.understandingaccounting.org/glossary/a/#acquisition-by-a-not-for-profit-entity "A transaction or other event in which a not-for-profit acquirer obtains control of one or more nonprofit activities or businesses and initially recognizes their assets and liabilities in the acquirer's financial statements. When applicable guidance in Topic 805 is applied by a not-for-profit entity, the term business combination has the same meaning as this term has for a for-profit entity. Likewise, a reference to business combinations in guidance that links to Topic 805 has the same meaning as a reference to acquisitions by not-for-profit entities."). ##### [805-958-15-4](https://asc.understandingaccounting.org/asc/805/958/#805-958-15-4) Pending content: no Source downloaded (UTC): 2026-09-10T01:27:48.912Z to 2026-09-10T01:27:48.912Z Record version: sha256:0aea51c48d55ca7f39b089358d467518c6cc90939f9768f71fcdbe02be9e45fe Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic does not apply to all of the following: 1. a The formation of a joint venture 2. b The acquisition of an asset or a group of assets that does not constitute either a [business](https://asc.understandingaccounting.org/glossary/b/#business "Paragraphs 805-10-55-3A805-10-55-4805-10-55-5805-10-55-6 and 805-10-55-8805-10-55-9 define what is considered a business.") or a [nonprofit activity](https://asc.understandingaccounting.org/glossary/n/#nonprofit-activity "An integrated set of activities and assets that is capable of being conducted and managed for the purpose of providing benefits, other than goods or services at a profit or profit equivalent, as a fulfillment of an entity's purpose or mission (for example, goods or services to beneficiaries, customers, or members). As with a not-for-profit entity, a nonprofit activity possesses characteristics that distinguish it from a business or a for-profit business entity."). (Subtopic 805-50 addresses the typical accounting for an asset acquisition.) 3. c A combination between [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), businesses, or nonprofit activities under common control. (Subtopic 805-50 addresses the typical accounting for a transfer of assets or an exchange of shares between entities under common control.) 4. d A transaction or other event in which an NFP obtains [control of another not-for-profit entity](https://asc.understandingaccounting.org/glossary/c/#control-of-a-not-for-profit-entity "See Control.") but does not consolidate that entity, as permitted or required by Section 958-810-25. Similarly, this Subtopic does not apply if an NFP that obtained control in a transaction or other event in which consolidation was permitted but not required decides in a subsequent annual reporting period to begin consolidating a controlled entity that it initially chose not to consolidate. ### Merger of Not-for-Profit Entities #### Overall Guidance ##### [805-958-15-5](https://asc.understandingaccounting.org/asc/805/958/#805-958-15-5) Pending content: no Source downloaded (UTC): 2026-09-10T01:27:48.912Z to 2026-09-10T01:27:48.912Z Record version: sha256:2a5b78a7a764cb5a61a595e63832590db9a101c56e3489c17920537c7ff98ac6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Merger of Not-for-Profit Entities Subsections follow the same Scope and Scope Exceptions as the General Subsections of this Subtopic, see Section 958-805-15, with specific exceptions noted below. #### Transactions ##### [805-958-15-6](https://asc.understandingaccounting.org/asc/805/958/#805-958-15-6) Pending content: no Source downloaded (UTC): 2026-09-10T01:27:48.912Z to 2026-09-10T01:27:48.912Z Record version: sha256:85a48cc751d7b2aa15ec9dc2d6a433ed4541b810d06d3a3d07cf28f64d67570b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in the Merger of Not-for-Profit Entities Subsections applies only to transactions or other events that meet the definition of a [merger of not-for-profit entities](https://asc.understandingaccounting.org/glossary/m/#merger-of-not-for-profit-entities "A transaction or other event in which the governing bodies of two or more not-for-profit entities cede control of those entities to create a new not-for-profit entity."). ### Acquisition by a Not-for-Profit Entity #### Overall Guidance ##### [805-958-15-7](https://asc.understandingaccounting.org/asc/805/958/#805-958-15-7) Pending content: no Source downloaded (UTC): 2026-09-10T01:27:48.912Z to 2026-09-10T01:27:48.912Z Record version: sha256:b6233a75fb59997b8be3bd631c38ade28ee5c49e67e19532826b657f774458d6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Acquisition by a Not-for-Profit Entity Subsections follow the same Scope and Scope Exceptions as the General Subsections of this Subtopic, see Section 958-805-15, with specific exceptions noted below. #### Transactions ##### [805-958-15-8](https://asc.understandingaccounting.org/asc/805/958/#805-958-15-8) Pending content: no Source downloaded (UTC): 2026-09-10T01:27:48.912Z to 2026-09-10T01:27:48.912Z Record version: sha256:6073ac331f6babfe9cf666e2ad0c45d57555744d964050d882af7116056d6556 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in the Acquisition by a Not-for-Profit Entity Subsections applies only to transactions or other events that meet the definition of an [acquisition by a not-for-profit entity](https://asc.understandingaccounting.org/glossary/a/#acquisition-by-a-not-for-profit-entity "A transaction or other event in which a not-for-profit acquirer obtains control of one or more nonprofit activities or businesses and initially recognizes their assets and liabilities in the acquirer's financial statements. When applicable guidance in Topic 805 is applied by a not-for-profit entity, the term business combination has the same meaning as this term has for a for-profit entity. Likewise, a reference to business combinations in guidance that links to Topic 805 has the same meaning as a reference to acquisitions by not-for-profit entities.").