{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/958/20/#05-overview-and-background","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":"958","topic_title":"Not-for-Profit Entities","subtopic":"958-20","subtopic_title":"Financially Interrelated Entities","section":{"number":"05","label":"05 Overview and Background","anchor":"05-overview-and-background","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"958-20-05-1","para":"05-1","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_2C410F7C-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">This Subtopic provides guidance for certain transactions between two <a href=\"/glossary/n/#not-for-profit-entity\" class=\"term\" title=\"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.\"><span>not-for-profit entities</span></a> (NFPs) if the relationship between them has both of the following characteristics: </span></span><ol class=\"ol-norm\"><li class=\"li-norm\"><span class=\"linum\">a</span><div class=\"p\"><span class=\"sfragment\" id=\"sfr_2C41112B-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">One of the entities has the ability to influence the operating and financial decisions of the other. </span></span></div></li><li class=\"li-norm\"><span class=\"linum\">b</span><div class=\"p\"><span class=\"sfragment\" id=\"sfr_2C411256-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">One of the entities has an <a href=\"/glossary/o/#ongoing-economic-interest-in-the-net-assets-of-another\" class=\"term\" title=\"A residual right to another not-for-profit entity's (NFP's) net assets that results from an ongoing relationship. The value of those rights increases or decreases as a result of the investment, fundraising, operating, and other activities of the other entity.\"><span>ongoing economic interest in the net assets of the other</span></a>. </span></span></div></li></ol></div></div>","snippet":"This Subtopic provides guidance for certain transactions between two not-for-profit entities (NFPs) if the relationship between them has both of the following characteristics:\n(a) One of the entities has the ability to i…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:dbe33eb2831061838cf5c427e59c2678a25e6f0078af5d3ef02152890adbb077","downloaded_from":"2026-09-10T02:21:33.238Z","last_downloaded_at":"2026-09-10T02:21:33.238Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481107","source_sha256":"2bce16a507c40f59813f6c9e22166a4ed3d4aac94c1654554290b1e3d83bcb90"}},{"citation":"958-20-05-2","para":"05-2","html":"<div class=\"asc-body\"><div class=\"norm-text\">In some cases, the relationship between the <a href=\"/glossary/f/#financially-interrelated-entities\" class=\"term\" title=\"A recipient entity and a specified beneficiary are financially interrelated entities if the relationship between them has both of the following characteristics: One of the entities has the ability to influence the operating and financial decisions of the other. One of the entities has an ongoing economic interest in the net assets of the other.\"><span>financially interrelated entities</span></a> requires consolidation, as discussed in Subtopic <a altsource=\"GUID-8C9AC891-494F-4CFB-A809-44DB140CC1D5.ditamap\" class=\"ditamap\">958-810</a>.</div></div>","snippet":"In some cases, the relationship between the financially interrelated entities requires consolidation, as discussed in Subtopic 958-810.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:3e98bcedd5431c633e829b2a32574ef1b47371976e33b2f4663efedf4f95ccd8","downloaded_from":"2026-09-10T02:21:33.238Z","last_downloaded_at":"2026-09-10T02:21:33.238Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481107","source_sha256":"2bce16a507c40f59813f6c9e22166a4ed3d4aac94c1654554290b1e3d83bcb90"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:0046eb41299aa810ee9cd291fa44e2cc57c4158199448e70f1f11a1dce0cf201","downloaded_from":"2026-09-10T02:21:33.238Z","last_downloaded_at":"2026-09-10T02:21:33.238Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481107","source_sha256":"2bce16a507c40f59813f6c9e22166a4ed3d4aac94c1654554290b1e3d83bcb90"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:bb87f9b546da88424eb434bca4983577c7493de58156c4bc1539f28b133a160f","downloaded_from":"2026-09-10T02:21:33.238Z","last_downloaded_at":"2026-09-10T02:21:33.238Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481107","source_sha256":"2bce16a507c40f59813f6c9e22166a4ed3d4aac94c1654554290b1e3d83bcb90"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:bb87f9b546da88424eb434bca4983577c7493de58156c4bc1539f28b133a160f","downloaded_from":"2026-09-10T02:21:33.238Z","last_downloaded_at":"2026-09-10T02:21:33.238Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481107","source_sha256":"2bce16a507c40f59813f6c9e22166a4ed3d4aac94c1654554290b1e3d83bcb90"}}