{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/805/958/#45-other-presentation-matters","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.","topic":"805","topic_title":"Business Combinations","subtopic":"805-958","subtopic_title":"Not-for-Profit Entities","section":{"number":"45","label":"45 Other Presentation Matters","anchor":"45-other-presentation-matters","is_sec":false,"groups":[{"block":"Merger of Not-for-Profit Entities","heading":null,"paragraphs":[{"citation":"805-958-45-1","para":"45-1","html":"
The not-for-profit entity (NFP) resulting from a merger of not-for-profit entities is a new reporting entity, with no activities before the merger date. Thus, the new NFP's initial reporting period begins with the merger date, and the merger itself shall not be reported as activity of the new NFP's initial reporting period. Rather, the combined assets, liabilities, and net assets of the merging entities are included in the statement of financial position as of the beginning of that initial reporting period, if presented.
","snippet":"The not-for-profit entity (NFP) resulting from a merger of not-for-profit entities is a new reporting entity, with no activities before the merger date. Thus, the new NFP's initial reporting period begins with the merger…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:5d5e7efb170b44d7e0d1c5be3117b2d8906b5704639c24697a57c558c02d21ff","downloaded_from":"2026-09-10T01:28:03.101Z","last_downloaded_at":"2026-09-10T01:28:03.101Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477832","source_sha256":"2b386cc486b61011e9f12a5d671397750d68ad5da690f72ed79b9e0aa8bb2109"}},{"citation":"805-958-45-2","para":"45-2","html":"
The new NFP's statement of activities and statement of cash flows for its initial reporting period shall do both of the following:
  1. a
    Include in the reported amounts as of the beginning of the period (the opening amounts), such as cash and cash equivalents at the beginning of the period, the combined amounts of the merging entities' assets, liabilities, and net assets (in total and by classes of net assets) as of the merger date. The following changes shall be reflected in the opening amounts:
    1. 1
      Accounting changes necessary to adjust a merging entity's financial statements to generally accepted accounting principles (GAAP) in accordance with paragraph 958-805-25-7
    2. 2
      Accounting changes to conform the individual accounting policies of the merging entities in accordance with paragraph 958-805-30-2
    3. 3
      Changes to eliminate intra-entity balances in accordance with paragraph 958-805-30-4.
  2. b
    Report activity from the merger date through the end of the reporting period.
","snippet":"The new NFP's statement of activities and statement of cash flows for its initial reporting period shall do both of the following:\n(a) Include in the reported amounts as of the beginning of the period (the opening amount…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:fd5d17f0e2c2a1f38f7f12d53b48d3575794d54bf8d4b8104ae82c081c3eb699","downloaded_from":"2026-09-10T01:28:03.101Z","last_downloaded_at":"2026-09-10T01:28:03.101Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477832","source_sha256":"2b386cc486b61011e9f12a5d671397750d68ad5da690f72ed79b9e0aa8bb2109"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a37774c2b0a5ac5dc71c49e08c9660513f9b2fa08f75841fae1c59f3b860af20","downloaded_from":"2026-09-10T01:28:03.101Z","last_downloaded_at":"2026-09-10T01:28:03.101Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477832","source_sha256":"2b386cc486b61011e9f12a5d671397750d68ad5da690f72ed79b9e0aa8bb2109"}},{"block":"Acquisition by a Not-for-Profit Entity","heading":null,"paragraphs":[{"citation":"805-958-45-3","para":"45-3","html":"
The financial statements of an acquirer (the combined entity) shall report an acquisition by a not-for-profit entity as activity of the period in which it occurs.
","snippet":"The financial statements of an acquirer (the combined entity) shall report an acquisition by a not-for-profit entity as activity of the period in which it occurs.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:8a3b0bd9c20f0396d393ce33702b98bd1c146c76572ee6b4339dbecb42660d9c","downloaded_from":"2026-09-10T01:28:03.101Z","last_downloaded_at":"2026-09-10T01:28:03.101Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477832","source_sha256":"2b386cc486b61011e9f12a5d671397750d68ad5da690f72ed79b9e0aa8bb2109"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c6d265b7cdcf44ef624213d27cd74ec0bc977d45503276ee6bb0a96005a4f2f9","downloaded_from":"2026-09-10T01:28:03.101Z","last_downloaded_at":"2026-09-10T01:28:03.101Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477832","source_sha256":"2b386cc486b61011e9f12a5d671397750d68ad5da690f72ed79b9e0aa8bb2109"}},{"block":"Acquisition by a Not-for-Profit Entity","heading":"Statement of Activities","paragraphs":[{"citation":"805-958-45-4","para":"45-4","html":"
A not-for-profit entity (NFP) acquirer shall report the excess amount recognized in accordance with the guidance in paragraph 958-805-25-29 as a separate line item on the face of its statement of activities. The separate line item shall be appropriately described, for example, as excess of consideration paid over net assets acquired in acquisition of Entity AB (or as excess of liabilities assumed over assets acquired in acquisition of Entity AB). Example 5 (see paragraphs
958-805-55-59 through 55-61
) illustrates one way an acquirer might present that amount in its statement of activities.
","snippet":"A not-for-profit entity (NFP) acquirer shall report the excess amount recognized in accordance with the guidance in paragraph 958-805-25-29 as a separate line item on the face of its statement of activities. The separate…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b30bfb08612c7866d6019dfb69ca49ba9266f3378595777d5bcb030bb68d31a5","downloaded_from":"2026-09-10T01:28:03.101Z","last_downloaded_at":"2026-09-10T01:28:03.101Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477832","source_sha256":"2b386cc486b61011e9f12a5d671397750d68ad5da690f72ed79b9e0aa8bb2109"}},{"citation":"805-958-45-5","para":"45-5","html":"
An NFP acquirer shall report the inherent contribution recognized in accordance with paragraph 958-805-25-31 as a separate line item on the face of the statement of activities. The separate line item shall be appropriately described, for example, as excess of assets acquired over liabilities assumed in donation of Entity XY or as contribution received in donation of Entity XY. In another situation, that excess might be described as excess of fair value of net assets acquired over consideration paid in acquisition of Entity XY.
","snippet":"An NFP acquirer shall report the inherent contribution recognized in accordance with paragraph 958-805-25-31 as a separate line item on the face of the statement of activities. The separate line item shall be appropriate…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:8867d0ddfe777e99d69ee17586f682d870ab807a428c0d4980bb832372619b21","downloaded_from":"2026-09-10T01:28:03.101Z","last_downloaded_at":"2026-09-10T01:28:03.101Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477832","source_sha256":"2b386cc486b61011e9f12a5d671397750d68ad5da690f72ed79b9e0aa8bb2109"}},{"citation":"805-958-45-6","para":"45-6","html":"
An NFP acquirer shall classify the inherent contribution received presented in accordance with the preceding paragraph on the basis of the donor restrictions imposed on the related net assets. In classifying those net assets, an acquirer shall do both of the following:
  1. a
    Include restrictions imposed on the net assets of the acquiree by a donor before the acquisition and those imposed by the donor of the business or nonprofit activity acquired, if any, in accordance with Section 958-605-45.
  2. b
    Report donor-restricted contributions as donor-restricted support even if the restrictions are met in the same reporting period in which the acquisition occurs. That is, the acquirer shall not apply the reporting exception in paragraph 958-605-45-4A to net assets with donor restrictions acquired in an acquisition.
","snippet":"An NFP acquirer shall classify the inherent contribution received presented in accordance with the preceding paragraph on the basis of the donor restrictions imposed on the related net assets. In classifying those net as…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:08f359e3c20aa07c7da002dd4d50c95ab21dd65582ec7d03f7f8b7a2dd9f35cc","downloaded_from":"2026-09-10T01:28:03.101Z","last_downloaded_at":"2026-09-10T01:28:03.101Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477832","source_sha256":"2b386cc486b61011e9f12a5d671397750d68ad5da690f72ed79b9e0aa8bb2109"}},{"citation":"805-958-45-7","para":"45-7","html":"
Thus, the inherent contribution received may increase net assets with donor restrictions, net assets without donor restrictions, or some combination of those items. Example 6 (see paragraphs
958-805-55-62 through 55-67
) illustrates the application of the preceding paragraph's guidance on reporting donor-imposed restrictions on an inherent contribution received.
","snippet":"Thus, the inherent contribution received may increase net assets with donor restrictions, net assets without donor restrictions, or some combination of those items. Example 6 (see paragraphs 958-805-55-62 through 55-67) …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:299797b3dbf7b25928918a78ea0cc686351829178e040782fcf2eea0bbdbb3fc","downloaded_from":"2026-09-10T01:28:03.101Z","last_downloaded_at":"2026-09-10T01:28:03.101Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477832","source_sha256":"2b386cc486b61011e9f12a5d671397750d68ad5da690f72ed79b9e0aa8bb2109"}},{"citation":"805-958-45-8","para":"45-8","html":"
An NFP acquirer that transfers assets as consideration for an acquired nonprofit activity or business shall assess whether that transaction satisfies a donor-imposed restriction (see the following paragraph) or otherwise results in a change in its net asset classifications (see paragraph 958-805-45-10).
","snippet":"An NFP acquirer that transfers assets as consideration for an acquired nonprofit activity or business shall assess whether that transaction satisfies a donor-imposed restriction (see the following paragraph) or otherwise…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e4aa3bcc6767892656914ffeb50b2163e074a3984f001151e46cd64b699f9353","downloaded_from":"2026-09-10T01:28:03.101Z","last_downloaded_at":"2026-09-10T01:28:03.101Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477832","source_sha256":"2b386cc486b61011e9f12a5d671397750d68ad5da690f72ed79b9e0aa8bb2109"}},{"citation":"805-958-45-9","para":"45-9","html":"
For example, transferring consideration in an acquisition might satisfy a donor-imposed restriction on the acquirer's net assets that were restricted for acquisition of land, buildings, works of art, or other long-lived assets if the acquiree has the qualifying assets. If so, the acquirer may either report the expiration of those restrictions separately or aggregate and report them together with other similar expirations of donor-imposed restrictions during the period in which the acquisition occurs.
","snippet":"For example, transferring consideration in an acquisition might satisfy a donor-imposed restriction on the acquirer's net assets that were restricted for acquisition of land, buildings, works of art, or other long-lived …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:148780cf104f39f54f542c354a4f4f212e134e14b98d0260784a80745b327cfa","downloaded_from":"2026-09-10T01:28:03.101Z","last_downloaded_at":"2026-09-10T01:28:03.101Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477832","source_sha256":"2b386cc486b61011e9f12a5d671397750d68ad5da690f72ed79b9e0aa8bb2109"}},{"citation":"805-958-45-10","para":"45-10","html":"
If transferring consideration results in changes in net asset classifications other than those described in the preceding paragraph, an NFP acquirer shall report those changes separately from both any other reclassification of net assets and any expiration of those restrictions during the period in which the acquisition occurs. For example, an acquirer that transfers as consideration its assets with no associated donor restrictions and acquires assets from the acquiree that have associated donor restrictions shall recognize a reclassification of net assets in its statement of activities.
","snippet":"If transferring consideration results in changes in net asset classifications other than those described in the preceding paragraph, an NFP acquirer shall report those changes separately from both any other reclassificat…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f1f5473b137ee2c15994281dddc605237431dc98a8c5f329def69cfd3c17dfad","downloaded_from":"2026-09-10T01:28:03.101Z","last_downloaded_at":"2026-09-10T01:28:03.101Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477832","source_sha256":"2b386cc486b61011e9f12a5d671397750d68ad5da690f72ed79b9e0aa8bb2109"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:04958bf0685763d4edbfbe8cc598835539deac84800dfd83f600e9320dcaaa55","downloaded_from":"2026-09-10T01:28:03.101Z","last_downloaded_at":"2026-09-10T01:28:03.101Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477832","source_sha256":"2b386cc486b61011e9f12a5d671397750d68ad5da690f72ed79b9e0aa8bb2109"}},{"block":"Acquisition by a Not-for-Profit Entity","heading":"Statement of Cash Flows","paragraphs":[{"citation":"805-958-45-11","para":"45-11","html":"
An NFP acquirer shall report the entire amount of any net cash flows related to an acquisition (cash paid as consideration, if any, less acquired cash of the acquiree) in the statement of cash flows as an investing activity, except for cash payments made to settle a contingent consideration liability arising from the acquisition that are not paid soon after the business combination. Example 7 (see paragraphs
958-805-55-68 through 55-70
) illustrates this requirement. In addition, cash payments made soon after the acquisition date of the business combination by an acquirer to settle a contingent consideration liability shall be classified as investing activities.
","snippet":"An NFP acquirer shall report the entire amount of any net cash flows related to an acquisition (cash paid as consideration, if any, less acquired cash of the acquiree) in the statement of cash flows as an investing activ…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:839c0e7c17e2a412eea74ad68d58fd6f163856118dba5b22f9a55e3bb60e08be","downloaded_from":"2026-09-10T01:28:03.101Z","last_downloaded_at":"2026-09-10T01:28:03.101Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477832","source_sha256":"2b386cc486b61011e9f12a5d671397750d68ad5da690f72ed79b9e0aa8bb2109"}},{"citation":"805-958-45-12","para":"45-12","html":"
Cash payments, or the portion of the payments, not made soon after the acquisition date of a business combination by the NFP acquirer to settle a contingent consideration liability up to the amount of the contingent consideration liability recognized at the acquisition date, including measurement-period adjustments, less any amounts paid soon after the acquisition date to settle the contingent consideration liability shall be classified as cash outflows for financing activities. Cash payments, or the portion of the payments, not made soon after the acquisition date of a business combination by the NFP acquirer to settle a contingent consideration liability that exceed the amount of the contingent consideration liability recognized at the acquisition date, including measurement-period adjustments, less any amounts paid soon after the acquisition date to settle the contingent consideration liability shall be classified as cash outflows for operating activities.
","snippet":"Cash payments, or the portion of the payments, not made soon after the acquisition date of a business combination by the NFP acquirer to settle a contingent consideration liability up to the amount of the contingent cons…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:25286dbb8aa46e4857492e543a96c213d0e9a5cc16604d396d454a526fcebffe","downloaded_from":"2026-09-10T01:28:03.101Z","last_downloaded_at":"2026-09-10T01:28:03.101Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477832","source_sha256":"2b386cc486b61011e9f12a5d671397750d68ad5da690f72ed79b9e0aa8bb2109"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:33310187dafcfd66e5c90ae706337d3f1ca4b24bb77047eb6c18dae699183f28","downloaded_from":"2026-09-10T01:28:03.101Z","last_downloaded_at":"2026-09-10T01:28:03.101Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477832","source_sha256":"2b386cc486b61011e9f12a5d671397750d68ad5da690f72ed79b9e0aa8bb2109"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f2de7daea3340169907bf0ded3528ee14e23181a72f81b39edc96f260e179aec","downloaded_from":"2026-09-10T01:28:03.101Z","last_downloaded_at":"2026-09-10T01:28:03.101Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477832","source_sha256":"2b386cc486b61011e9f12a5d671397750d68ad5da690f72ed79b9e0aa8bb2109"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f2de7daea3340169907bf0ded3528ee14e23181a72f81b39edc96f260e179aec","downloaded_from":"2026-09-10T01:28:03.101Z","last_downloaded_at":"2026-09-10T01:28:03.101Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477832","source_sha256":"2b386cc486b61011e9f12a5d671397750d68ad5da690f72ed79b9e0aa8bb2109"}}