ASC

ASC 958-10

Overall

958 Not-for-Profit Entities

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In brief

IntroductoryNot-for-profitIndustry-specificFinancial statement presentation

ASC 958-10 sets the scope of the Not-for-Profit Entities Topic and its relationship to the rest of the Codification. It applies to nongovernmental entities meeting the definition of an NFP and provides only incremental industry-specific guidance—NFPs must otherwise follow all other Topics unless a Scope Section exempts them or the subject matter is inapplicable (e.g., payment of dividends). It also lists the Subtopics comprising Topic 958 and directs NFPs to apply other guidance in an analogous manner suited to their reporting model.

Key points (7)
  • Topic 958 provides only incremental industry-specific guidance; entities in scope must also comply with applicable guidance not included in the Topic (958-10-15-1), and other Topics apply to NFPs unless their Scope Sections exempt NFPs or the subject matter precludes applicability, such as payment of dividends (958-10-05-1).
  • The Topic applies to all nongovernmental NFPs, including a nonexclusive list of organization types from cemetery organizations through zoological and botanical societies, plus any other entity meeting the NFP definition (958-10-15-2 through 15-3).
  • An entity can meet the NFP definition without satisfying every criterion (a), (b), or (c); for example, trade associations, country clubs, and unions that meet only criterion (b) are within scope (958-10-15-4).
  • Clearly outside the definition are all investor-owned entities and entities that provide dividends, lower costs, or other economic benefits directly and proportionately to owners, members, or participants—such as mutual insurance entities, credit unions, farm and rural electric cooperatives, and employee benefit plans (958-10-15-5).
  • Tax-exempt status is determined by the IRS and is distinct from NFP status; an entity may meet the definition of an NFP yet not be tax-exempt under the Internal Revenue Code (958-10-15-6).
  • When applying other Topics, NFPs follow that guidance in an analogous manner appropriate to their reporting model, considering the reporting objectives when judging how to display elements, such as in which net asset class (958-10-45-1).
  • Certain Subtopics within 958-605 on revenue recognition also apply to business entities as identified in their Scope Sections (958-10-15-1), and not-for-profit, business-oriented health care entities also apply Topic 954 (958-10-60-1).

For students. Scope is the trap here: students often assume NFPs have a self-contained rulebook, when Topic 958 is only incremental—an NFP still applies ASC 606, 842, 820, and others unless specifically exempted. Also remember that GAAP's NFP definition is independent of IRS tax exemption, and member-benefit entities like credit unions and cooperatives fall outside it.

not-for-profit entity definitionnongovernmental entityincremental industry-specific guidancescope exemptionnet asset classreporting modelinvestor-owned entity

Machine-generated study aid for ASC 958-10. Check the source paragraphs below.

958-10-00Status

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958-10-05Overview and Background

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958-10-05-1
The Not-for-Profit Entities Topic provides guidance for not-for-profit entities (NFPs) as defined in Section 958-10-15 that are nongovernmental entities, or as further defined in the Scope Sections of the individual Subtopics. Guidance in other Topics and Subtopics applies to NFPs unless the specific Scope Sections exempt NFPs or the subject matter precludes applicability (for example, payment of dividends).
958-10-05-2
This Topic includes the following Subtopics:
  1. a
    Overall
  2. b
    Financially Interrelated Entities
  3. c
    Split-Interest Agreements
  4. d
    Presentation of Financial Statements
  5. e
    Balance Sheet
  6. f
    Income Statement
  7. g
    Statement of Cash Flows
  8. h
    Receivables
  9. i
    Investments—Debt Securities
  10. ii
    Investments—Equity Securities
  11. j
    Investments—Other
  12. k
    Property, Plant, and Equipment
  13. l
    Liabilities
  14. m
    Contingencies
  15. n
    Revenue Recognition—Contributions
  16. o
    Compensation—Retirement Benefits
  17. p
    Other Expenses
  18. pp
    Business Combinations (Mergers and Acquisitions)
  19. q
    Consolidation.
958-10-05-3
The Overall Subtopic provides guidance on the scope of this Topic as well as relationships to other Topics in the Codification.

958-10-15Scope and Scope Exceptions

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Overall Guidance

958-10-15-1
The Subtopics within the Not-for-Profit Entities Topic only provide incremental industry-specific guidance for the entities defined in this Scope Section, or as further defined in the Scope Sections of the individual Not-for-Profit Entities Subtopics. Entities within the scope of this Topic shall also comply with the applicable guidance not included in this Topic. Certain Subtopics within Subtopic 958-605 on revenue recognition also apply to business entities. Those Subtopics will be specifically identified in their Scope Sections.

Entities

958-10-15-2
The guidance in this Topic applies to all not-for-profit entities (NFPs).
958-10-15-3
The guidance in this Topic applies to the following nongovernmental NFPs:
  1. a
    Cemetery organizations
  2. b
    Civic and community organizations
  3. c
    Colleges and universities
  4. d
    Elementary and secondary schools
  5. e
    Federated fundraising organizations
  6. f
    Fraternal organizations
  7. g
    Health care entities (see also Topic 954)
  8. h
    Labor unions
  9. i
    Libraries
  10. j
    Museums
  11. k
    Other cultural organizations
  12. l
    Performing arts organizations
  13. m
    Political parties
  14. n
    Political action committees
  15. o
    Private and community foundations
  16. p
    Professional associations
  17. q
    Public broadcasting stations
  18. r
    Religious organizations
  19. s
    Research and scientific organizations
  20. t
    Social and country clubs
  21. u
    Trade associations
  22. v
    Voluntary health and welfare entities
  23. w
    Zoological and botanical societies.
Additionally, the guidance in this Topic applies to all entities that meet the definition of an NFP, regardless of whether they are included in this list.
958-10-15-4
NFPs have the characteristics in criteria (a), (b), and (c) of the definition of not-for-profit entity in varying degrees. An entity could meet the definition of an NFP without meeting criterion (a), (b), or (c). For example, although trade associations, country clubs, unions, and other similar entities often meet criterion (b) in the definition of an NFP (that is, they have operating purposes other than to provide goods or services at a profit) but may not meet the other criteria, those entities are within the scope of this Topic.
958-10-15-5
Entities that clearly fall outside this definition include the following:
  1. a
    All investor-owned entities
  2. b
    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.
958-10-15-6
The Internal Revenue Service determines whether an entity qualifies for exemption from federal income tax. For example, an entity may meet the definition of an NFP, but may nevertheless not be tax-exempt under the Internal Revenue Code because it has violated the rules applicable to tax-exempt organizations.

958-10-45Other Presentation Matters

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958-10-45-1
When applying the guidance in other Topics and Subtopics, NFPs shall follow that guidance in an analogous manner that is appropriate for their method of reporting financial performance and financial position (the reporting model defined in this Topic). NFPs shall consider the reporting objectives of the guidance when exercising judgment about how best to display elements, such as in which net asset class.

958-10-60Relationships

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Health Care Entities

958-10-60-1
For additional standards that apply to not-for-profit entities (NFPs) that are not-for-profit, business-oriented health care entities, see Topic 954.

958-10-65Transition and Open Effective Date Information

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958-10-65-1
Paragraph superseded on 1/31/2020 after the end of the transition period stated in Accounting Standards Update No. 2016-14, Not-for-Profit Entities (Topic 958): Presentation of Financial Statements of Not-for-Profit Entities.
958-10-65-2
Paragraph superseded on 08/19/2021 after the end of the transition period stated in Accounting Standards Update No. 2018-08, Not-for-Profit Entities (Topic 958): Clarifying the Scope and the Accounting Guidance for Contributions Received and Contributions Made.
958-10-65-3
Paragraph superseded on 08/19/2021 after the end of the transition period stated in Accounting Standards Update No. 2019-03, Not-for-Profit Entities (Topic 958): Updating the Definition of Collections.
958-10-65-4
Paragraph superseded on 09/24/2024 after the end of the transition period stated in Accounting Standards Update No. 2020-07, Not-for-Profit Entities (Topic 958): Presentation and Disclosures by Not-for-Profit Entities for Contributed Nonfinancial Assets.

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