{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/958/20/#15-scope-and-scope-exceptions","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":"15","label":"15 Scope and Scope Exceptions","anchor":"15-scope-and-scope-exceptions","is_sec":false,"groups":[{"block":null,"heading":"Overall Guidance","paragraphs":[{"citation":"958-20-15-1","para":"15-1","html":"
This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section 958-10-15, with specific qualifications noted below.
","snippet":"This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section 958-10-15, with specific qualifications noted below.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:46955f5dc727d07c521856ad536a4f8078ce02c5c8feca515ea72ed80b9c5e7b","downloaded_from":"2026-09-10T02:21:36.095Z","last_downloaded_at":"2026-09-10T02:21:36.095Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481076","source_sha256":"49bbebe3f50982c79e052ceb791e845252d62098dee075dbd6f8a1006d9de678"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:95930f21ed9b107cc9c67aa2dec40d5da1aac564d7a09689245e34f746dc7cd0","downloaded_from":"2026-09-10T02:21:36.095Z","last_downloaded_at":"2026-09-10T02:21:36.095Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481076","source_sha256":"49bbebe3f50982c79e052ceb791e845252d62098dee075dbd6f8a1006d9de678"}},{"block":null,"heading":"Entities","paragraphs":[{"citation":"958-20-15-2","para":"15-2","html":"
The guidance in this Subtopic applies to entities that are financially interrelated. A recipient entity and a specified beneficiary are financially interrelated entities if the relationship between them has both of the following characteristics:
  1. a
    One entity has the ability to influence the operating and financial decisions of the other. The ability to exercise that influence may be demonstrated in several ways, including the following:
    1. 1
      The entities are affiliates.
    2. 2
      One entity has considerable representation on the governing board of the other entity.
    3. 3
      The charter or bylaws of one entity limit its activities to those that are beneficial to the other entity.
    4. 4
      An agreement between the entities allows one entity to actively participate in policymaking processes of the other, such as setting organizational priorities, budgets, and management compensation.
  2. b
    One entity has an ongoing economic interest in the net assets of the other. If the specified beneficiary has an ongoing economic interest in the net assets of the recipient entity, the beneficiary's rights to the assets held by the recipient entity are residual rights; that is, the value of those rights increases or decreases as a result of the investment, fundraising, operating, and other activities of the recipient entity. Alternatively, but less common, a recipient entity may have an ongoing economic interest in the net assets of the specified beneficiary. If so, the recipient entity's rights are residual rights, and their value changes as a result of the operations of the beneficiary.
","snippet":"The guidance in this Subtopic applies to entities that are financially interrelated. A recipient entity and a specified beneficiary are financially interrelated entities if the relationship between them has both of the f…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f947174ebed592cf8b24cc62aed01da354cc7c42fa39e74cd22a9dee6bce39b3","downloaded_from":"2026-09-10T02:21:36.095Z","last_downloaded_at":"2026-09-10T02:21:36.095Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481076","source_sha256":"49bbebe3f50982c79e052ceb791e845252d62098dee075dbd6f8a1006d9de678"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:5b70ba4b18dc41f28d13d13cea179db97ab6315e4a856d6218558ca447b2421e","downloaded_from":"2026-09-10T02:21:36.095Z","last_downloaded_at":"2026-09-10T02:21:36.095Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481076","source_sha256":"49bbebe3f50982c79e052ceb791e845252d62098dee075dbd6f8a1006d9de678"}},{"block":null,"heading":"Transactions","paragraphs":[{"citation":"958-20-15-3","para":"15-3","html":"
The guidance in this Subtopic applies to the following types of transactions:
  1. a
    Transactions in which an entity—the donor—makes a contribution by transferring assets to a not-for-profit entity (NFP) or charitable trust—the recipient entity—that accepts the assets from the donor and agrees to use those assets on behalf of or transfer those assets, the return on investment of those assets, or both to a financially interrelated entity—the beneficiary—that is specified by the donor
  2. b
    Transfers that take place in a similar manner to (a) but are not contributions for either of the following reasons:
    1. 1
      The entity that transfers the assets to the recipient entity—the resource provider—is related to the beneficiary in a way that causes the transfer to be reciprocal.
    2. 2
      Conditions imposed by the resource provider or the relationships between the parties make the transfer of assets to the recipient entity revocable or repayable.
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The guidance in this Subtopic applies to transfers addressed by the preceding paragraph of cash and other assets, including securities, land, buildings, use of facilities or utilities, materials and supplies, intangible assets, services, and unconditional promises to give those items in the future.
","snippet":"The guidance in this Subtopic applies to transfers addressed by the preceding paragraph of cash and other assets, including securities, land, buildings, use of facilities or utilities, materials and supplies, intangible …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:557d0c185df69d9692edd0a859a0432125788d92cfbb5c1e8af4ab4f6e7cf293","downloaded_from":"2026-09-10T02:21:36.095Z","last_downloaded_at":"2026-09-10T02:21:36.095Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481076","source_sha256":"49bbebe3f50982c79e052ceb791e845252d62098dee075dbd6f8a1006d9de678"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:3e250fd79c797b90398bd3a1baa83c5d630d35b33a7d9651e00b128e762c5d25","downloaded_from":"2026-09-10T02:21:36.095Z","last_downloaded_at":"2026-09-10T02:21:36.095Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481076","source_sha256":"49bbebe3f50982c79e052ceb791e845252d62098dee075dbd6f8a1006d9de678"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a41ec3b278c8b4197e85dffd3aabb793ca014d9a5f4d00f8e5dbe7f097e5c5d4","downloaded_from":"2026-09-10T02:21:36.095Z","last_downloaded_at":"2026-09-10T02:21:36.095Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481076","source_sha256":"49bbebe3f50982c79e052ceb791e845252d62098dee075dbd6f8a1006d9de678"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a41ec3b278c8b4197e85dffd3aabb793ca014d9a5f4d00f8e5dbe7f097e5c5d4","downloaded_from":"2026-09-10T02:21:36.095Z","last_downloaded_at":"2026-09-10T02:21:36.095Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481076","source_sha256":"49bbebe3f50982c79e052ceb791e845252d62098dee075dbd6f8a1006d9de678"}}