# ASC 958-30: Not-for-Profit Entities — Split-Interest Agreements Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/958/30/) 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): 2026-09-10T02:21:59.891Z to 2026-09-10T02:22:23.587Z Record version: sha256:4919c0e0fb68bffa1ec259502cb4b0e779889c9e4715bf1dc421b40291a23c60 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 958-30: Not-for-Profit Entities — Split-Interest Agreements ### Machine-generated study aids ```json { "summary": "ASC 958-30 governs how a not-for-profit entity accounts for split-interest agreements—trusts or similar arrangements (charitable lead/remainder annuity trusts and unitrusts, charitable gift annuities, pooled income funds) in which the NFP shares the benefits of donated assets with other, usually non-charitable, beneficiaries. Revocable agreements are treated as intentions to give (assets recorded as a refundable advance); irrevocable agreements are recognized on execution at fair value, with contribution revenue equal to the assets received less the fair value of the obligation to other beneficiaries. When a third party holds the assets, the NFP instead recognizes a beneficial interest at fair value, and the liability side of period-certain, variable-payment agreements may contain a bifurcable embedded derivative under Topic 815.", "key_points": [ "Revocable split-interest agreements are accounted for as intentions to give: assets received as trustee are recognized at fair value with an offsetting refundable advance, and contribution revenue is recognized only when the agreement becomes irrevocable or the assets are distributed for the NFP's unconditional use (958-30-25-2; 958-30-30-3).", "For an irrevocable agreement naming the NFP trustee or fiscal agent and absent donor-imposed conditions, the NFP recognizes assets at fair value, a liability for future payments to other beneficiaries at fair value (often the present value of future payments), and contribution revenue for the difference, all at execution (958-30-25-4; 958-30-25-6; 958-30-30-4 through 30-8).", "A liability that is solely life-contingent qualifies for the exception in 815-10-15-52 through 15-57 and is outside Topic 815, but a liability with variable payments over a period-certain generally contains an embedded derivative that must be bifurcated under 815-15-25-1 unless a fair value election is made (958-30-25-8 through 25-14; 958-30-55-8 through 55-29).", "For pooled income funds and net income unitrusts, assets are recognized at fair value when received, the remainder interest is recognized as contribution revenue, and the difference is deferred revenue for the discount for future interest, amortized as a change in the value of split-interest agreements (958-30-25-15; 958-30-30-10; 958-30-35-9).", "When a third party controls the assets, the NFP recognizes a beneficial interest asset and contribution revenue at fair value when notified—unless the trustee has variance power or the NFP's rights are conditional—remeasures it at fair value through the statement of activities, and records no liability (958-30-25-16 through 25-19; 958-30-30-11; 958-30-35-10).", "If the fair value option is not elected, the liability is remeasured only for amortization of the discount and revaluations based on changes in life expectancy and other actuarial assumptions, and the discount rate is not revised after initial recognition (958-30-35-6; 958-30-35-7); on termination the accounts are closed and residual amounts recognized as changes in the value of split-interest agreements (958-30-40-1).", "Contribution revenue is classified as an increase in net assets with donor restrictions unless the NFP has the immediate unrestricted right to use the assets; a charitable gift annuity contribution is unrestricted only if the donor imposes no restriction and no law or agreement requires the assets to be invested until the income beneficiary's death (958-30-45-1; 958-30-45-2)." ], "categories": [ "Not-for-profit", "Recognition", "Fair value", "Derivatives and hedging" ], "audience_level": "advanced", "student_note": "Exam questions usually turn on two switches: who controls the assets (NFP as trustee vs. third-party trustee, which decides liability vs. beneficial-interest accounting) and whether the payments are fixed/life-contingent or variable/period-certain (which decides embedded derivative bifurcation). The common misunderstanding is treating the full amount of assets received as contribution revenue—revenue is only the net contribution portion after deducting the fair value of the obligation to the other beneficiaries.", "related_topics": [ "958-605", "815-15", "820-10", "825-10", "958-320", "958-220" ], "key_concepts": [ "split-interest agreement", "lead interest", "remainder interest", "charitable gift annuity", "pooled income fund", "beneficial interest in trust", "embedded derivative bifurcation", "net assets with donor restrictions" ] } ``` Source downloaded (UTC): 2026-09-10T02:21:59.891Z to 2026-09-10T02:21:59.891Z Record version: sha256:9ce2795813034c859b28f618a7eab605b5dd8f93c7d575489b7fb21511f3ab50 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 958-30-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/958/30/#00-status) SEC content: no ##### [958-30-00-1](https://asc.understandingaccounting.org/asc/958/30/#958-30-00-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:21:59.891Z to 2026-09-10T02:21:59.891Z Record version: sha256:bdd4ce78645c887ac5f3d56e849f105db32327544d9a28f59e876a8ad53cf86e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following table identifies the changes made to this Subtopic.
ParagraphActionAccounting Standards UpdateDate
Board-Designated Endowment FundAmendedAccounting Standards Update No. 2016-1408/18/2016
Board-Designated Net AssetsAddedAccounting Standards Update No. 2016-1408/18/2016
Conditional ContributionAddedAccounting Standards Update No. 2018-0806/21/2018
ContributionAmendedAccounting Standards Update No. 2018-0806/21/2018
ContributionAmendedAccounting Standards Update No. 2010-0701/28/2010
Donor-Imposed ConditionAmendedAccounting Standards Update No. 2018-0806/21/2018
Donor-Imposed RestrictionAddedAccounting Standards Update No. 2016-1408/18/2016
Donor-Restricted Endowment FundAddedAccounting Standards Update No. 2016-1408/18/2016
Donor-Restricted SupportAddedAccounting Standards Update No. 2016-1408/18/2016
Endowment FundAmendedAccounting Standards Update No. 2016-1408/18/2016
Funds Functioning as EndowmentAddedAccounting Standards Update No. 2016-1408/18/2016
Net AssetsAddedAccounting Standards Update No. 2016-1408/18/2016
Net Assets with Donor RestrictionsAddedAccounting Standards Update No. 2016-1408/18/2016
Net Assets without Donor RestrictionsAddedAccounting Standards Update No. 2016-1408/18/2016
Permanent EndowmentSupersededAccounting Standards Update No. 2016-1408/18/2016
Permanently Restricted Net AssetsSupersededAccounting Standards Update No. 2016-1408/18/2016
Promise to GiveAddedAccounting Standards Update No. 2018-0806/21/2018
Reclassification of Net AssetsAddedAccounting Standards Update No. 2016-1408/18/2016
Restricted SupportSupersededAccounting Standards Update No. 2016-1408/18/2016
Temporarily Restricted Net AssetsSupersededAccounting Standards Update No. 2016-1408/18/2016
Temporary RestrictionSupersededAccounting Standards Update No. 2016-1408/18/2016
Unrestricted Net AssetsSupersededAccounting Standards Update No. 2016-1408/18/2016
Unrestricted SupportSupersededAccounting Standards Update No. 2016-1408/18/2016
958-30-25-2AmendedAccounting Standards Update No. 2016-0101/05/2016
958-30-25-4AmendedAccounting Standards Update No. 2016-0101/05/2016
958-30-25-17AmendedAccounting Standards Update No. 2012-0410/01/2012
958-30-35-4AmendedAccounting Standards Update No. 2016-0101/05/2016
958-30-35-11AmendedAccounting Standards Update No. 2016-0101/05/2016
958-30-45-1 through 45-5
AmendedAccounting Standards Update No. 2016-1408/18/2016
958-30-45-6AmendedMaintenance Update 2020-18 (PDF)11/25/2020
958-30-45-7AmendedMaintenance Update 2020-18 (PDF)11/25/2020
958-30-45-7AmendedAccounting Standards Update No. 2016-1408/18/2016
958-30-50-1AmendedAccounting Standards Update No. 2018-1308/28/2018
958-30-50-1AmendedAccounting Standards Update No. 2012-0410/01/2012
958-30-50-1AmendedAccounting Standards Update No. 2011-0405/12/2011
958-30-50-2AmendedAccounting Standards Update No. 2016-1408/18/2016
958-30-50-3AmendedAccounting Standards Update No. 2016-1408/18/2016
958-30-55-4AmendedAccounting Standards Update No. 2016-1408/18/2016
958-30-55-5SupersededAccounting Standards Update No. 2016-1408/18/2016
958-30-55-30AmendedAccounting Standards Update No. 2016-1408/18/2016
Source downloaded (UTC): 2026-09-10T02:22:01.739Z to 2026-09-10T02:22:01.739Z Record version: sha256:db1f4163f9eec882cec4714ed01e76faad4b98c21e1f83ad243c1ea6c421df41 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 958-30-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/958/30/#05-overview-and-background) SEC content: no ##### [958-30-05-1](https://asc.understandingaccounting.org/asc/958/30/#958-30-05-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:01.739Z to 2026-09-10T02:22:01.739Z Record version: sha256:036d9377a3e2b5c1873bee56e3534338790f004bbf41f5b990d08313cf9b4059 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic provides guidance for reporting arrangements under which a [not-for-profit entity](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.") (NFP) shares the benefits of assets with other beneficiaries (a [split-interest agreement](https://asc.understandingaccounting.org/glossary/s/#split-interest-agreement "An agreement in which a donor enters into a trust or other arrangement under which a not-for-profit entity (NFP) receives benefits that are shared with other beneficiaries. A typical split-interest agreement has the following two components: A lead interest A remainder interest.")). Those other beneficiaries generally are not NFPs. For example, a donor may give an NFP the right to receive all or a portion of the specified cash flows from a charitable trust or other identifiable pool of assets that is held either by the NFP or by an unrelated third party (such as a bank, trust company, foundation, or private individual). ##### [958-30-05-2](https://asc.understandingaccounting.org/asc/958/30/#958-30-05-2) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:01.739Z to 2026-09-10T02:22:01.739Z Record version: sha256:0379c27cefe5b0c337eb6b4f2456a111116a6c49484a7e93733b6e4327f56711 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If the NFP shares the cash flows with another beneficiary, that agreement is subject to the guidance in this Subtopic. ##### [958-30-05-3](https://asc.understandingaccounting.org/asc/958/30/#958-30-05-3) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:01.739Z to 2026-09-10T02:22:01.739Z Record version: sha256:17c692c3babf53b3d2100bac9f63b7e486571914932e46075071c05aeaa374dc Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If the NFP controls the rights to all of the specified cash flows from the trust or other identifiable pool of assets, the agreement is subject to the guidance in paragraphs [958-605-25-28 through 25-30](https://asc.understandingaccounting.org/asc/605/958/#605-958-25-28) . #### General Structure ##### [958-30-05-4](https://asc.understandingaccounting.org/asc/958/30/#958-30-05-4) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:01.739Z to 2026-09-10T02:22:01.739Z Record version: sha256:9cd6ce395a073dc14d38be0c2937ab03b7b24ca0f74e59afb45ac411cee4beb3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Split-interest agreements are agreements in which donors enter into trusts or other arrangements under which an NFP receives benefits that are shared with other beneficiaries that generally are not NFPs. A typical split-interest agreement has the following two components: 1. a A [lead interest](https://asc.understandingaccounting.org/glossary/l/#lead-interest "The right to the benefits (cash flows or use) of assets during the term of a split-interest agreement, which generally starts upon the signing of the agreement and terminates at either of the following times: After a specified number of years (period-certain) Upon the occurrence of a certain event, commonly either the death of the donor or the death of the lead interest beneficiary (life-contingent).") 2. b A [remainder interest](https://asc.understandingaccounting.org/glossary/r/#remainder-interest "The right to receive all or a portion of the assets of a split-interest agreement remaining at the end of the agreement's term."). ##### [958-30-05-5](https://asc.understandingaccounting.org/asc/958/30/#958-30-05-5) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:01.739Z to 2026-09-10T02:22:01.739Z Record version: sha256:3b4f3eb6ef46cf34643f7be0c00bbb9cd3ff6d14f6b20334643e3eddd1e8fd72 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The lead interest is the right to the benefits (cash flows or use) of assets during the term of the split-interest agreement, which generally starts upon the signing of the agreement and terminates at either of the following times: 1. a After a specified number of years (period-certain) 2. b Upon the occurrence of a certain event, commonly either the death of the donor or the death of the lead interest beneficiary (life-contingent). The remainder interest is the right to receive all or a portion of the assets of a split-interest agreement remaining at the end of the agreement's term. ##### [958-30-05-6](https://asc.understandingaccounting.org/asc/958/30/#958-30-05-6) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:01.739Z to 2026-09-10T02:22:01.739Z Record version: sha256:02016f3e3b0cd8f8e1fa5a87a4959826522d2b29e2cf15b753dfa689695a3f74 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Split-interest agreements can take any one of the following forms: 1. a [Charitable lead annuity trust](https://asc.understandingaccounting.org/glossary/c/#charitable-lead-annuity-trust "A trust established in connection with a split-interest agreement, in which a not-for-profit entity (NFP) receives distributions of a fixed amount during the agreement's term. Upon termination of the trust, the remainder of the trust assets is paid to the donor or to third-party beneficiaries designated by the donor.") 2. b [Charitable lead unitrust](https://asc.understandingaccounting.org/glossary/c/#charitable-lead-unitrust "A trust established in connection with a split-interest agreement, in which a not-for-profit entity (NFP) receives distributions of a fixed percentage of the fair value of the trust's assets during the agreement's term. Upon termination of the trust, the remainder of the trust assets is paid to the donor or to third-party beneficiaries designated by the donor.") 3. c [Charitable remainder annuity trust](https://asc.understandingaccounting.org/glossary/c/#charitable-remainder-annuity-trust "A trust established in connection with a split-interest agreement, in which the donor or a third-party beneficiary receives distributions of a fixed amount during the agreement's term. Upon termination of the trust, a not-for-profit entity (NFP) receives the assets remaining in the trust.") 4. d [Charitable remainder unitrust](https://asc.understandingaccounting.org/glossary/c/#charitable-remainder-unitrust "A trust established in connection with a split-interest agreement, in which the donor or a third-party beneficiary receives distributions of a fixed percentage of the fair value of the trust's assets during the agreement's term. Upon termination of the trust, a not-for-profit entity (NFP) receives the assets remaining in the trust.") 5. e [Charitable gift annuities](https://asc.understandingaccounting.org/glossary/c/#charitable-gift-annuity "A transfer of assets to a not-for-profit entity (NFP) in connection with a split-interest agreement that is in part a contribution and in part an exchange transaction. The NFP accepts the contribution and is obligated to make periodic stipulated payments to the donor or a third-party beneficiary for a specified period of time, usually either a specified number of years or until the death of the donor or third-party beneficiary.") 6. f [Pooled income funds](https://asc.understandingaccounting.org/glossary/p/#pooled-income-fund "A trust in which donors are assigned a specific number of units based on the proportion of the fair value of their contributions to the total fair value of the pooled income fund on the date of the donor's entry to the pooled fund. Until a donor's death, the donor (or the donor's designated beneficiary or beneficiaries) is paid the actual income (as defined under the arrangement) earned on the donor's assigned units. Upon the donor's death, the value of these assigned units reverts to the NFP."). ##### [958-30-05-7](https://asc.understandingaccounting.org/asc/958/30/#958-30-05-7) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:01.739Z to 2026-09-10T02:22:01.739Z Record version: sha256:6af735fb2a6ee36a1995dffdac76ec91584968564e1375e83bd871e674434a26 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The terms of some agreements do not allow donors to revoke their gifts; other agreements may be revocable by donors in certain situations. This Subtopic addresses the accounting for both revocable and irrevocable split-interest agreements. ##### [958-30-05-8](https://asc.understandingaccounting.org/asc/958/30/#958-30-05-8) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:01.739Z to 2026-09-10T02:22:01.739Z Record version: sha256:8b66a0de542b755b5aa2bcfb217a06d07af2aaab677a09d968f478ac414d90fa Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The donor may transfer the assets to an unrelated third party (such as a bank, trust company, foundation, or private individual) or may give the NFP the right to control the contributed assets by either of the following: 1. a Naming the NFP as [trustee](https://asc.understandingaccounting.org/glossary/t/#trustee "An entity that has a duty to hold and manage assets for the benefit of a specified beneficiary in accordance with a charitable trust agreement. In some states, not-for-profit entities (NFPs) are organized under trust law rather than as corporations. Those NFPs are not trustees as defined because, under those statutes, they hold assets in trust for the community or some other broadly described group, rather than for a specific beneficiary.") of the trust holding the assets 2. b Granting the NFP the right to hold the assets as general assets of the entity. This Subtopic addresses the accounting for all of those situations. #### Charitable Lead Annuity Trusts and Lead Unitrusts ##### [958-30-05-9](https://asc.understandingaccounting.org/asc/958/30/#958-30-05-9) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:01.739Z to 2026-09-10T02:22:01.739Z Record version: sha256:6533249fb0bb47e47548a0990a9974b4d69d88eb9172d86099fb27e9b56f6530 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Assets such as cash or shares of stock are contributed by the donor either to the control of the NFP through its role as trustee of a trust holding the assets or to a third-party trustee. The NFP receives periodic cash payments (the lead interest) that are either a fixed dollar amount (an [annuity trust](https://asc.understandingaccounting.org/glossary/a/#annuity-trust "See Charitable Remainder Trust.")) or a specified percentage of the [fair value](https://asc.understandingaccounting.org/glossary/f/#fair-value "The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.") of the assets as of the beginning of each period (a unitrust). Some of the assets may need to be liquidated to make the required payments. At the termination of the agreement, the remaining assets revert to the donor or the donor's beneficiary (the remainder interest). #### Charitable Remainder Annuity Trusts and Remainder Unitrusts ##### [958-30-05-10](https://asc.understandingaccounting.org/asc/958/30/#958-30-05-10) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:01.739Z to 2026-09-10T02:22:01.739Z Record version: sha256:ca1b1a15a750a635e4c7d4b99f037497651358170f2ac1aaaa9cb52f9241dd6e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Assets such as cash or shares of stock are contributed by the donor either to the control of the NFP through its role as trustee of a trust holding the assets or to a third-party trustee. The NFP (or the trust) makes periodic payments to the donor or the donor's beneficiary that are either a fixed dollar amount (an annuity trust) or a specified percentage of the fair value of the assets during the term of the agreement (a unitrust). Some of the assets may need to be liquidated to make the payments. At the termination of the agreement, the remaining assets revert to the NFP. #### Charitable Gift Annuities ##### [958-30-05-11](https://asc.understandingaccounting.org/asc/958/30/#958-30-05-11) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:01.739Z to 2026-09-10T02:22:01.739Z Record version: sha256:dd60c8cc5b7b55b2b530d82652563adcc09bee2dbc001049fe32eb00d73e1f96 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A charitable gift annuity is an arrangement between a donor and an NFP in which the donor contributes assets to the NFP in exchange for a promise by the NFP to pay a fixed amount for a specified period of time to the donor or to individuals or entities designated by the donor. The agreements are similar to charitable remainder annuity trusts except that no trust exists, the assets received are held as general assets of the NFP, and the annuity liability is a general obligation of the NFP. #### Pooled Income Fund ##### [958-30-05-12](https://asc.understandingaccounting.org/asc/958/30/#958-30-05-12) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:01.739Z to 2026-09-10T02:22:01.739Z Record version: sha256:398e4728a84dbb5e6ea8c9904c81745d902bb8644393707792de5d76867f5519 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Some NFPs form, invest, and manage pooled income funds. These funds are divided into units, and [contributions](https://asc.understandingaccounting.org/glossary/c/#contribution "An unconditional transfer of cash or other assets, as well as unconditional promises to give, to an entity or a reduction, settlement, or cancellation of its liabilities in a voluntary nonreciprocal transfer by another entity acting other than as an owner. Those characteristics distinguish contributions from:Exchange transactions, which are reciprocal transfers in which each party receives and sacrifices approximately commensurate valueInvestments by owners and distributions to owners, which are nonreciprocal transfers between an entity and its ownersOther nonreciprocal transfers, such as impositions of taxes or legal judgments, fines, and thefts, which are not voluntary transfers. In a contribution transaction, the resource provider often receives value indirectly by providing a societal benefit although that benefit is not considered to be of commensurate value. In an exchange transaction, the potential public benefits are secondary to the potential direct benefits to the resource provider. The term contribution revenue is used to apply to transactions that are part of the entity's ongoing major or central activities (revenues), or are peripheral or incidental to the entity (gains). See also Inherent Contribution and Conditional Contribution.") of many donors' life income gifts are pooled and invested as a group. Source downloaded (UTC): 2026-09-10T02:22:04.567Z to 2026-09-10T02:22:04.567Z Record version: sha256:542f3cfd51c601a378eb24b5a82e5dc003fed4b4f471f006a378e868f7f47cf4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 958-30-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/958/30/#15-scope-and-scope-exceptions) SEC content: no #### Overall Guidance ##### [958-30-15-1](https://asc.understandingaccounting.org/asc/958/30/#958-30-15-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:04.567Z to 2026-09-10T02:22:04.567Z Record version: sha256:9afc7b2096b21b05f364a68c7afd579cd314b8ee777899ffb9e4d26adc9f6522 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section 958-10-15. Source downloaded (UTC): 2026-09-10T02:22:08.355Z to 2026-09-10T02:22:08.355Z Record version: sha256:c40c3102a970d201b3e161160377cc6426f56ce86a5304fe04d734510631561a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 958-30-25: 25 Recognition [Read section](https://asc.understandingaccounting.org/asc/958/30/#25-recognition) SEC content: no ##### [958-30-25-1](https://asc.understandingaccounting.org/asc/958/30/#958-30-25-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:08.355Z to 2026-09-10T02:22:08.355Z Record version: sha256:6fa72a3d20da40259d18d9dd9d6907d1f5616961ff03a2f77b7504b0fe9db72d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Section provides recognition guidance for two types of split-interest agreements: 1. a Revocable agreements 2. b Irrevocable agreements. #### Revocable Agreements ##### [958-30-25-2](https://asc.understandingaccounting.org/asc/958/30/#958-30-25-2) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:08.355Z to 2026-09-10T02:22:08.355Z Record version: sha256:ed6aa4a0b938656798d69a917c094334927e069988d5c7a33a4aa4edccaa5fdb Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Revocable split-interest agreements shall be accounted for as intentions to give. Assets received by a [not-for-profit entity](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.") (NFP) acting as a [trustee](https://asc.understandingaccounting.org/glossary/t/#trustee "An entity that has a duty to hold and manage assets for the benefit of a specified beneficiary in accordance with a charitable trust agreement. In some states, not-for-profit entities (NFPs) are organized under trust law rather than as corporations. Those NFPs are not trustees as defined because, under those statutes, they hold assets in trust for the community or some other broadly described group, rather than for a specific beneficiary.") under a revocable [split-interest agreement](https://asc.understandingaccounting.org/glossary/s/#split-interest-agreement "An agreement in which a donor enters into a trust or other arrangement under which a not-for-profit entity (NFP) receives benefits that are shared with other beneficiaries. A typical split-interest agreement has the following two components: A lead interest A remainder interest.") shall be recognized when received as assets and as a refundable advance. If those assets are investments, they shall be recognized in conformity with Section 958-320-25, 958-321-25, or 958-325-25, as appropriate. [Contribution](https://asc.understandingaccounting.org/glossary/c/#contribution "An unconditional transfer of cash or other assets, as well as unconditional promises to give, to an entity or a reduction, settlement, or cancellation of its liabilities in a voluntary nonreciprocal transfer by another entity acting other than as an owner. Those characteristics distinguish contributions from:Exchange transactions, which are reciprocal transfers in which each party receives and sacrifices approximately commensurate valueInvestments by owners and distributions to owners, which are nonreciprocal transfers between an entity and its ownersOther nonreciprocal transfers, such as impositions of taxes or legal judgments, fines, and thefts, which are not voluntary transfers. In a contribution transaction, the resource provider often receives value indirectly by providing a societal benefit although that benefit is not considered to be of commensurate value. In an exchange transaction, the potential public benefits are secondary to the potential direct benefits to the resource provider. The term contribution revenue is used to apply to transactions that are part of the entity's ongoing major or central activities (revenues), or are peripheral or incidental to the entity (gains). See also Inherent Contribution and Conditional Contribution.") revenue for the assets received shall be recognized when the agreement becomes irrevocable or when the assets are distributed to the NFP for its unconditional use, whichever occurs first. #### Irrevocable Agreements ##### [958-30-25-3](https://asc.understandingaccounting.org/asc/958/30/#958-30-25-3) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:08.355Z to 2026-09-10T02:22:08.355Z Record version: sha256:53f5d8f45f885645748743feca6ef01db8994b7f1220513b16d9aceca3c20033 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Under irrevocable split-interest agreements the assets contributed by the donor may be either: 1. a Held by an NFP 2. b Held by a third party. ##### [958-30-25-4](https://asc.understandingaccounting.org/asc/958/30/#958-30-25-4) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:08.355Z to 2026-09-10T02:22:08.355Z Record version: sha256:c7ed425072d64654063731d76f53b5b476ff4b3df9247b6a6a650156a9a326ce Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In the absence of [donor-imposed conditions](https://asc.understandingaccounting.org/glossary/d/#donor-imposed-condition "A donor stipulation (donors include other types of contributors, including makers of certain grants) that represents a barrier that must be overcome before the recipient is entitled to the assets transferred or promised. Failure to overcome the barrier gives the contributor a right of return of the assets it has transferred or gives the promisor a right of release from its obligation to transfer its assets."), an NFP shall recognize contribution revenue and related assets and liabilities when an irrevocable split-interest agreement naming it trustee or fiscal [agent](https://asc.understandingaccounting.org/glossary/a/#agent "An entity that acts for and on behalf of another. Although the term agency has a legal definition, the term is used broadly to encompass not only legal agency, but also the relationships described in Topic 958. A recipient entity acts as an agent for and on behalf of a donor if it receives 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 specified beneficiary. A recipient entity acts as an agent for and on behalf of a beneficiary if it agrees to solicit assets from potential donors specifically for the beneficiary's use and to distribute those assets to the beneficiary. A recipient entity also acts as an agent if a beneficiary can compel the recipient entity to make distributions to it or on its behalf.") is executed. Assets received under those agreements shall be recorded when received. If those assets are investments, they shall be recognized in conformity with Section 958-320-25, 958-321-25, or 958-325-25, as appropriate. The contribution portion of the agreement (that is, the part that represents the unconditional transfer of assets in a voluntary nonreciprocal transaction) shall be recognized as revenue or gain (see paragraph [958-30-45-7](https://asc.understandingaccounting.org/asc/958/30/#958-30-45-7)). ##### [958-30-25-5](https://asc.understandingaccounting.org/asc/958/30/#958-30-25-5) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:08.355Z to 2026-09-10T02:22:08.355Z Record version: sha256:f93c0835c733b17b8afb79ea7fa20039108760171bd201378dc2038605b408f6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraphs [958-30-25-6 through 25-15](https://asc.understandingaccounting.org/asc/958/30/#958-30-25-6) provide guidance on the following types of donor agreements: 1. a Split-interest agreements other than pooled income funds or net income unitrusts 2. b Pooled income funds or net income unitrusts. ##### [958-30-25-6](https://asc.understandingaccounting.org/asc/958/30/#958-30-25-6) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:08.355Z to 2026-09-10T02:22:08.355Z Record version: sha256:a5c1895ef2000e376af9d987c657eb5017c9e1807eacf789824dec0cc1c31d84 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If the split-interest agreement is other than a pooled income fund or net income unitrust (for example, a [charitable gift annuity](https://asc.understandingaccounting.org/glossary/c/#charitable-gift-annuity "A transfer of assets to a not-for-profit entity (NFP) in connection with a split-interest agreement that is in part a contribution and in part an exchange transaction. The NFP accepts the contribution and is obligated to make periodic stipulated payments to the donor or a third-party beneficiary for a specified period of time, usually either a specified number of years or until the death of the donor or third-party beneficiary."), a [charitable lead trust](https://asc.understandingaccounting.org/glossary/c/#charitable-lead-trust "A trust established in connection with a split-interest agreement, in which a not-for-profit entity (NFP) receives distributions during the agreement's term. Upon termination of the trust, the remainder of the trust assets is paid to the donor or to third-party beneficiaries designated by the donor."), or a [charitable remainder trust](https://asc.understandingaccounting.org/glossary/c/#charitable-remainder-trust "A trust established in connection with a split-interest agreement, in which the donor or a third-party beneficiary receives specified distributions during the agreement's term. Upon termination of the trust, a not-for-profit entity (NFP) receives the assets remaining in the trust.")), the transferred assets, or a portion of those assets, are being held for the benefit of others, such as the donor or third parties designated by the donor. A liability for the future payments to be made to those other beneficiaries shall also be recognized at the date of initial recognition. See paragraphs [958-30-25-7 through 25-14](https://asc.understandingaccounting.org/asc/958/30/#958-30-25-7) to determine whether the agreement contains an embedded derivative. ##### [958-30-25-7](https://asc.understandingaccounting.org/asc/958/30/#958-30-25-7) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:08.355Z to 2026-09-10T02:22:08.355Z Record version: sha256:49ec7e1c86e5935fd55a9465988c1b7cf2ee19d2bf476182dd307b9946027103 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following two aspects of a split-interest agreement's payment terms affect the accounting treatment for an NFP's liability for the payment or payments to the donor or the donor's beneficiary: 1. a Whether the payments are a fixed or variable cash amount 2. b Whether the agreement is period-certain or life-contingent. ##### [958-30-25-8](https://asc.understandingaccounting.org/asc/958/30/#958-30-25-8) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:08.355Z to 2026-09-10T02:22:08.355Z Record version: sha256:14f071d75e96642fb2801950ddedba5807a5077aa4ed07428ba9801e121e8d0e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An NFP's liability for its obligation to the donor or the donor's beneficiary under an irrevocable split-interest agreement shall be analyzed to determine whether it qualifies for the exception in paragraphs [815-10-15-52 through 15-57](https://asc.understandingaccounting.org/asc/815/10/#815-10-15-52) , in which case that liability would not be subject to the requirements of Topic 815. For example, if the obligation is solely life-contingent (that is, contingent upon the survival of an identified individual, in which case the payments are made only if the individual is alive when the payments are due), that obligation would qualify for the exception in paragraphs [815-10-15-52 through 15-57](https://asc.understandingaccounting.org/asc/815/10/#815-10-15-52) . ##### [958-30-25-9](https://asc.understandingaccounting.org/asc/958/30/#958-30-25-9) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:08.355Z to 2026-09-10T02:22:08.355Z Record version: sha256:e734dc06edd95b4d007a1b29d5c089db0c44a99952d2f42fdc8a649a6859cec8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If an NFP's liability for its obligation under the split-interest agreement does not qualify for the exception in paragraphs [815-10-15-52 through 15-57](https://asc.understandingaccounting.org/asc/815/10/#815-10-15-52) because the agreement is not solely life-contingent, the NFP shall determine whether that liability meets the definition of a derivative instrument in its entirety under paragraph [815-10-15-83](https://asc.understandingaccounting.org/asc/815/10/#815-10-15-83) or whether it contains an embedded derivative that could warrant separate accounting under paragraph [815-15-25-1](https://asc.understandingaccounting.org/asc/815/15/#815-15-25-1) unless a fair value election is made pursuant to Section 815-15-25. ##### [958-30-25-10](https://asc.understandingaccounting.org/asc/958/30/#958-30-25-10) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:08.355Z to 2026-09-10T02:22:08.355Z Record version: sha256:0daf4c319935a06be32b8d1d156154c6762272d6d44ad0d594fa2f89f55a3cf3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The NFP's liability for its obligation under a split-interest agreement would typically not meet the definition of a derivative instrument in its entirety because it would not meet the criterion in paragraph [815-10-15-83(b)](https://asc.understandingaccounting.org/asc/815/10/#815-10-15-83) that requires the contract to have no initial net investment or an initial net investment that is smaller than would be required for other types of contracts that would be expected to have a similar response to changes in market factors. In contrast, the initial net investment for the liability recognized for typical split-interest agreements is its [fair value](https://asc.understandingaccounting.org/glossary/f/#fair-value "The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date."). ##### [958-30-25-11](https://asc.understandingaccounting.org/asc/958/30/#958-30-25-11) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:08.355Z to 2026-09-10T02:22:08.355Z Record version: sha256:5b017d3bd85ef02e2ec6b74b5524d232992e3db03558f3d8279a264443089278 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If an NFP's liability for its obligation under the split-interest agreement does not in its entirety meet the definition of a derivative instrument in paragraph [815-10-15-83](https://asc.understandingaccounting.org/asc/815/10/#815-10-15-83), that liability shall be analyzed to determine whether it contains provisions that constitute an embedded derivative that warrants separate accounting under paragraph [815-15-25-1](https://asc.understandingaccounting.org/asc/815/15/#815-15-25-1). ##### [958-30-25-12](https://asc.understandingaccounting.org/asc/958/30/#958-30-25-12) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:08.355Z to 2026-09-10T02:22:08.355Z Record version: sha256:75f5de4d3488b1bf30920cf042793f1f62e1b45e8f207698414ea74b73508cff Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Generally, the liability representing an obligation under a split-interest agreement contains an embedded derivative if the payments are variable and the agreement is period-certain (rather than life-contingent). The embedded derivative shall be bifurcated and accounted for as a derivative instrument pursuant to the requirements of paragraph [815-15-25-1](https://asc.understandingaccounting.org/asc/815/15/#815-15-25-1) unless a fair value election is made pursuant to Section 815-15-25 or the Fair Value Option Subsections of Subtopic 825-10. ##### [958-30-25-13](https://asc.understandingaccounting.org/asc/958/30/#958-30-25-13) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:08.355Z to 2026-09-10T02:22:08.355Z Record version: sha256:4277dca4475aad1515d2c77abd1f796d2d89e9e50b23747ea519f1ea875ef563 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Example 2, Cases A through H (see paragraphs [958-30-55-6 through 55-29](https://asc.understandingaccounting.org/asc/958/30/#958-30-55-6) ) illustrate the applicability of paragraphs [958-30-25-7 through 25-12](https://asc.understandingaccounting.org/asc/958/30/#958-30-25-7) to various split-interest agreements that are invested in shares of common stock. ##### [958-30-25-14](https://asc.understandingaccounting.org/asc/958/30/#958-30-25-14) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:08.355Z to 2026-09-10T02:22:08.355Z Record version: sha256:12df925db1feaa2007c23c4268f1c92129e0afd761dd8fb4e8789f36ff6bff49 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Other split-interest agreements may involve the gift of corporate or U.S. government debt securities, or other securities that are not equity. In determining whether or not those split-interest agreements contain an embedded derivative, the same analysis outlined in paragraph [815-15-25-1](https://asc.understandingaccounting.org/asc/815/15/#815-15-25-1) shall be applied. The notion of clearly and closely related, as defined in paragraph [815-15-25-1(a)](https://asc.understandingaccounting.org/asc/815/15/#815-15-25-1), shall involve an assessment of the economic characteristics and risks associated with the nonequity securities in relation to the economic characteristics and risks of the NFP's debt host contract. Generally, because of the differences in credit risk, the change in the fair value of corporate bonds (based on that corporation's credit and interest rate risk) will not be clearly and closely related to the change in the economic characteristics and risks of the NFP's debt host contract. Thus, an embedded derivative requiring bifurcation and separate accounting for the embedded derivative would exist unless a fair value election is made pursuant to Section 815-15-25 or the Fair Value Option Subsections of Subtopic 825-10. ##### [958-30-25-15](https://asc.understandingaccounting.org/asc/958/30/#958-30-25-15) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:08.355Z to 2026-09-10T02:22:08.355Z Record version: sha256:b43a6420b4d8a12e98e81dd84d35a9b348ba1eec4a7eaf93968476c78eb0fccd Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The assets received from the donor under a pooled income fund agreement or a [net income unitrust](https://asc.understandingaccounting.org/glossary/n/#net-income-unitrust "A trust established in connection with a split-interest agreement, in which the donor or a third-party beneficiary receives distributions during the agreement's term of the lesser of the net income earned by the trust or a fixed percentage of the fair value of the trust's assets, with or without recovery and distribution of the shortfall in a subsequent year. Upon termination of the trust, a not-for-profit entity (NFP) receives the assets remaining in the trust.") shall be recognized when received. An NFP also shall recognize its [remainder interest](https://asc.understandingaccounting.org/glossary/r/#remainder-interest "The right to receive all or a portion of the assets of a split-interest agreement remaining at the end of the agreement's term.") in the assets received as contribution revenue in the period in which the assets are received from the donor. The difference between the assets recognized and the revenue recognized shall be recorded as deferred revenue, representing the amount of the discount for future interest. ##### [958-30-25-16](https://asc.understandingaccounting.org/asc/958/30/#958-30-25-16) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:08.355Z to 2026-09-10T02:22:08.355Z Record version: sha256:d1084de856731d3267a1d2ab848a2588c03d10a77ed877e3f17ecd21187d4b4a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Some NFPs are parties to split-interest agreements that involve a third party who maintains control of the donor's contributed assets. In a split-interest agreement in which cash or other assets contributed by a donor are held by an independent trustee (such as a charitable trust for which a bank, trust company, foundation, or private individual is the trustee) or by another fiscal agent of the donor or the cash or other assets are otherwise not controlled by the NFP, the NFP shall recognize its beneficial interest in those assets. ##### [958-30-25-17](https://asc.understandingaccounting.org/asc/958/30/#958-30-25-17) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:08.355Z to 2026-09-10T02:22:08.355Z Record version: sha256:40b8df408efb5799999b3632eb4e3efa56dcb4b0dc6f6ef47aa313927ff80c57 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Pursuant to paragraphs [958-605-25-28 through 25-30](https://asc.understandingaccounting.org/asc/605/958/#605-958-25-28) , if an NFP is the beneficiary of a split-interest agreement held by a third party and has an unconditional right to receive all or a portion of the specified cash flows from the assets held pursuant to that agreement, the NFP shall recognize that beneficial interest as an asset and contribution revenue. That asset and contribution revenue represents its entitlement to the [lead interest](https://asc.understandingaccounting.org/glossary/l/#lead-interest "The right to the benefits (cash flows or use) of assets during the term of a split-interest agreement, which generally starts upon the signing of the agreement and terminates at either of the following times: After a specified number of years (period-certain) Upon the occurrence of a certain event, commonly either the death of the donor or the death of the lead interest beneficiary (life-contingent).") payments or the remainder interest, as stipulated in the agreement. The contribution shall be recognized when the NFP is notified of the split-interest agreement's existence. ##### [958-30-25-18](https://asc.understandingaccounting.org/asc/958/30/#958-30-25-18) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:08.355Z to 2026-09-10T02:22:08.355Z Record version: sha256:63efdea3747619366987ef6cb8a82b505e9fb7db9ce08714ef64d015035b3c36 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. However, if the trustee or fiscal agent has [variance power](https://asc.understandingaccounting.org/glossary/v/#variance-power "The unilateral power to redirect the use of the transferred assets to another beneficiary. A donor explicitly grants variance power if the recipient entity's unilateral power to redirect the use of the assets is explicitly referred to in the instrument transferring the assets. Unilateral power means that the recipient entity can override the donor's instructions without approval from the donor, specified beneficiary, or any other interested party.") to redirect the benefits to another entity or if the NFP's rights to the benefits are conditional, the NFP shall not recognize its potential for future distributions from the split-interest agreement until the NFP has an unconditional right to receive benefits under the agreement. ##### [958-30-25-19](https://asc.understandingaccounting.org/asc/958/30/#958-30-25-19) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:08.355Z to 2026-09-10T02:22:08.355Z Record version: sha256:2e028e76e23a2f832faa0d6781c871831ea714174babf3dec127c8f2de34b310 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The NFP does not have an obligation to pay either the remainder or lead interest to the designated beneficiary, as that responsibility remains with the third party who maintains control of the assets (thus, the NFP does not recognize a liability). Further, under paragraph [815-15-25-1](https://asc.understandingaccounting.org/asc/815/15/#815-15-25-1), the embedded derivative would not be bifurcated, as the criterion in paragraph [815-15-25-1(b)](https://asc.understandingaccounting.org/asc/815/15/#815-15-25-1) is not met. Source downloaded (UTC): 2026-09-10T02:22:11.482Z to 2026-09-10T02:22:11.482Z Record version: sha256:5fcc72c8c42b3e81db26a71aadd179dddb5c335c53cebcd7de636290269a9e0e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 958-30-30: 30 Initial Measurement [Read section](https://asc.understandingaccounting.org/asc/958/30/#30-initial-measurement) SEC content: no #### Fair Value Measurement ##### [958-30-30-1](https://asc.understandingaccounting.org/asc/958/30/#958-30-30-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:11.482Z to 2026-09-10T02:22:11.482Z Record version: sha256:11691d47ff914dab8ca5c64274106b019f813ff67d0a78dcbb4370c11ad63314 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Topic 820 establishes a framework for measuring [fair value](https://asc.understandingaccounting.org/glossary/f/#fair-value "The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date."). This Subtopic uses present value techniques as one possible technique to measure the [contribution](https://asc.understandingaccounting.org/glossary/c/#contribution "An unconditional transfer of cash or other assets, as well as unconditional promises to give, to an entity or a reduction, settlement, or cancellation of its liabilities in a voluntary nonreciprocal transfer by another entity acting other than as an owner. Those characteristics distinguish contributions from:Exchange transactions, which are reciprocal transfers in which each party receives and sacrifices approximately commensurate valueInvestments by owners and distributions to owners, which are nonreciprocal transfers between an entity and its ownersOther nonreciprocal transfers, such as impositions of taxes or legal judgments, fines, and thefts, which are not voluntary transfers. In a contribution transaction, the resource provider often receives value indirectly by providing a societal benefit although that benefit is not considered to be of commensurate value. In an exchange transaction, the potential public benefits are secondary to the potential direct benefits to the resource provider. The term contribution revenue is used to apply to transactions that are part of the entity's ongoing major or central activities (revenues), or are peripheral or incidental to the entity (gains). See also Inherent Contribution and Conditional Contribution.") revenue and obligation to other beneficiaries of a [split-interest agreement](https://asc.understandingaccounting.org/glossary/s/#split-interest-agreement "An agreement in which a donor enters into a trust or other arrangement under which a not-for-profit entity (NFP) receives benefits that are shared with other beneficiaries. A typical split-interest agreement has the following two components: A lead interest A remainder interest."). See paragraphs [820-10-55-4 through 55-20](https://asc.understandingaccounting.org/asc/820/10/#820-10-55-4) for implementation guidance for using present value techniques if the measurement objective is fair value. Other valuation techniques are also available, as discussed in Section 820-10-35. ##### [958-30-30-2](https://asc.understandingaccounting.org/asc/958/30/#958-30-30-2) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:11.482Z to 2026-09-10T02:22:11.482Z Record version: sha256:6ff959d7206be8a1e9da6087600df00f88e7e0de63de6d1c689a623133319778 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Section provides initial measurement guidance for the two types of split-interest agreements: 1. a Revocable agreements 2. b Irrevocable agreements. #### Revocable Agreements ##### [958-30-30-3](https://asc.understandingaccounting.org/asc/958/30/#958-30-30-3) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:11.482Z to 2026-09-10T02:22:11.482Z Record version: sha256:4d17a45184be12412090fec45fa05dba1eee9aa215c1ab1f152aa7ec5430bab8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Assets received by a [not-for-profit entity](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.") (NFP) acting as a [trustee](https://asc.understandingaccounting.org/glossary/t/#trustee "An entity that has a duty to hold and manage assets for the benefit of a specified beneficiary in accordance with a charitable trust agreement. In some states, not-for-profit entities (NFPs) are organized under trust law rather than as corporations. Those NFPs are not trustees as defined because, under those statutes, they hold assets in trust for the community or some other broadly described group, rather than for a specific beneficiary.") under a revocable split-interest agreement shall be recognized at fair value. #### Irrevocable Agreements ##### [958-30-30-4](https://asc.understandingaccounting.org/asc/958/30/#958-30-30-4) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:11.482Z to 2026-09-10T02:22:11.482Z Record version: sha256:72b10e0fb01cb5791183aa775e7c7a1aa3e9b78ac62a0ac514f990b31fdfda07 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If the NFP serves as trustee or if the assets contributed by the donor are otherwise under the control of the NFP, cash and other assets received under split-interest agreements shall be recognized at fair value at the date of initial recognition. Further, in accordance with paragraph [958-605-30-2](https://asc.understandingaccounting.org/asc/605/958/#605-958-30-2), contributions shall be measured at fair value at the date of initial recognition of a split-interest agreement. ##### [958-30-30-5](https://asc.understandingaccounting.org/asc/958/30/#958-30-30-5) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:11.482Z to 2026-09-10T02:22:11.482Z Record version: sha256:9cb5e42b7a2e01de970836fcc9d7f917cd0fa9e9a7e72dc07b9935ec24e3ba46 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If the split-interest agreement is other than a [pooled income fund](https://asc.understandingaccounting.org/glossary/p/#pooled-income-fund "A trust in which donors are assigned a specific number of units based on the proportion of the fair value of their contributions to the total fair value of the pooled income fund on the date of the donor's entry to the pooled fund. Until a donor's death, the donor (or the donor's designated beneficiary or beneficiaries) is paid the actual income (as defined under the arrangement) earned on the donor's assigned units. Upon the donor's death, the value of these assigned units reverts to the NFP.") or net income unitrust (for example, a [charitable gift annuity](https://asc.understandingaccounting.org/glossary/c/#charitable-gift-annuity "A transfer of assets to a not-for-profit entity (NFP) in connection with a split-interest agreement that is in part a contribution and in part an exchange transaction. The NFP accepts the contribution and is obligated to make periodic stipulated payments to the donor or a third-party beneficiary for a specified period of time, usually either a specified number of years or until the death of the donor or third-party beneficiary."), a [charitable lead trust](https://asc.understandingaccounting.org/glossary/c/#charitable-lead-trust "A trust established in connection with a split-interest agreement, in which a not-for-profit entity (NFP) receives distributions during the agreement's term. Upon termination of the trust, the remainder of the trust assets is paid to the donor or to third-party beneficiaries designated by the donor."), or a [charitable remainder trust](https://asc.understandingaccounting.org/glossary/c/#charitable-remainder-trust "A trust established in connection with a split-interest agreement, in which the donor or a third-party beneficiary receives specified distributions during the agreement's term. Upon termination of the trust, a not-for-profit entity (NFP) receives the assets remaining in the trust.")), the transferred assets, or a portion of those assets, are being held for the benefit of others, such as the donor or third parties designated by the donor. That liability shall be measured at fair value at the date of initial recognition. If present value techniques are used to measure fair value, the liability is measured at the present value of the future payments to be made to the other beneficiaries. ##### [958-30-30-6](https://asc.understandingaccounting.org/asc/958/30/#958-30-30-6) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:11.482Z to 2026-09-10T02:22:11.482Z Record version: sha256:3f87c04cf749c2f06b35bd6b52b5ff1b7f7f5f284613fbdcf2f660eab41b6af0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Any present value technique for measuring the fair value of the contribution or payments to be made to other beneficiaries shall consider the elements described in paragraph [820-10-55-5](https://asc.understandingaccounting.org/asc/820/10/#820-10-55-5), including the following: 1. a The estimated return on the invested assets during the expected term of the agreement 2. b The contractual payment obligations under the agreement 3. c A discount rate commensurate with the risks involved. ##### [958-30-30-7](https://asc.understandingaccounting.org/asc/958/30/#958-30-30-7) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:11.482Z to 2026-09-10T02:22:11.482Z Record version: sha256:5a23443ac0316659c71e1d66f1cba6ebf37cebb8d3454ddea0fdcb9224959407 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Under a [lead interest](https://asc.understandingaccounting.org/glossary/l/#lead-interest "The right to the benefits (cash flows or use) of assets during the term of a split-interest agreement, which generally starts upon the signing of the agreement and terminates at either of the following times: After a specified number of years (period-certain) Upon the occurrence of a certain event, commonly either the death of the donor or the death of the lead interest beneficiary (life-contingent).") agreement, the fair value of the contribution can be estimated directly based on the present value of the future distributions to be received by the NFP as a beneficiary. Under lead interest agreements, the future payments to be made to other beneficiaries will be made by the NFP only after the NFP receives its benefits. In those situations, the present value of the future payments to be made to other beneficiaries may be estimated by the fair value of the assets contributed by the donor under the agreement less the fair value of the benefits to be received by the NFP. If present value techniques are used, the fair value of the benefits to be received by the NFP shall be measured at the present value of the benefits to be received over the expected term of the agreement. ##### [958-30-30-8](https://asc.understandingaccounting.org/asc/958/30/#958-30-30-8) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:11.482Z to 2026-09-10T02:22:11.482Z Record version: sha256:13f31624b62833a3eab9bf035927ee7918282523a927037aa2fe13530c019d8a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Under [remainder interest](https://asc.understandingaccounting.org/glossary/r/#remainder-interest "The right to receive all or a portion of the assets of a split-interest agreement remaining at the end of the agreement's term.") agreements, the present value of the future payments to be made to other beneficiaries can be estimated directly based on the terms of the agreement. Future distributions will be received by the NFP only after obligations to other beneficiaries are satisfied. In those cases, the fair value of the contribution may be estimated based on the fair value of the assets contributed by the donor less the fair value of the payments to be made to other beneficiaries. ##### [958-30-30-9](https://asc.understandingaccounting.org/asc/958/30/#958-30-30-9) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:11.482Z to 2026-09-10T02:22:11.482Z Record version: sha256:7133019a1387e42e7b772b59e220b37329a255baf0d0c0c98879e964d3165595 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Pursuant to Section 815-15-30, an embedded derivative in an obligation for future payments to be made to other beneficiaries shall be measured at fair value. Alternatively, an NFP that serves as a trustee or fiscal [agent](https://asc.understandingaccounting.org/glossary/a/#agent "An entity that acts for and on behalf of another. Although the term agency has a legal definition, the term is used broadly to encompass not only legal agency, but also the relationships described in Topic 958. A recipient entity acts as an agent for and on behalf of a donor if it receives 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 specified beneficiary. A recipient entity acts as an agent for and on behalf of a beneficiary if it agrees to solicit assets from potential donors specifically for the beneficiary's use and to distribute those assets to the beneficiary. A recipient entity also acts as an agent if a beneficiary can compel the recipient entity to make distributions to it or on its behalf.") can irrevocably elect to measure the entire obligation at fair value pursuant to Section 815-15-25 or the Fair Value Option Subsections of Subtopic 825-10. ##### [958-30-30-10](https://asc.understandingaccounting.org/asc/958/30/#958-30-30-10) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:11.482Z to 2026-09-10T02:22:11.482Z Record version: sha256:838de5fec053ed6fb5fe87867df2eb64877dba3df067f7f44d3b05b401043ca5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The contributed assets received from the donor under a pooled income fund agreement or a [net income unitrust](https://asc.understandingaccounting.org/glossary/n/#net-income-unitrust "A trust established in connection with a split-interest agreement, in which the donor or a third-party beneficiary receives distributions during the agreement's term of the lesser of the net income earned by the trust or a fixed percentage of the fair value of the trust's assets, with or without recovery and distribution of the shortfall in a subsequent year. Upon termination of the trust, a not-for-profit entity (NFP) receives the assets remaining in the trust.") shall be recognized at fair value. The contribution shall be measured at fair value. Present value techniques are one valuation technique for measuring the fair value of the contribution; other valuation techniques are also available, as described in Topic 820. If present value techniques are used, the contribution may be measured at the fair value of the assets to be received, discounted for the estimated time period until the donor's death. ##### [958-30-30-11](https://asc.understandingaccounting.org/asc/958/30/#958-30-30-11) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:11.482Z to 2026-09-10T02:22:11.482Z Record version: sha256:72dafb0ca5ef642afadce816edefbb90360bccdd5fe43b11dab9411bdea7879d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Pursuant to paragraph [958-605-30-14](https://asc.understandingaccounting.org/asc/605/958/#605-958-30-14), if an NFP is the beneficiary of a split-interest agreement held by a third party and has an unconditional right to receive all or a portion of the specified cash flows from the assets held pursuant to that agreement, the NFP shall measure its beneficial interest at fair value. Source downloaded (UTC): 2026-09-10T02:22:13.243Z to 2026-09-10T02:22:13.243Z Record version: sha256:1cdffee8e2316299620e06a77982934be3410aeef8df36a3ae8a7333670561e0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 958-30-35: 35 Subsequent Measurement [Read section](https://asc.understandingaccounting.org/asc/958/30/#35-subsequent-measurement) SEC content: no #### Fair Value Measurement ##### [958-30-35-1](https://asc.understandingaccounting.org/asc/958/30/#958-30-35-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:13.243Z to 2026-09-10T02:22:13.243Z Record version: sha256:496cd0fb6ef79a81fb52583c34fd8b49bb04ddd98a513e2ce1c392b28e691065 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Topic 820 establishes a framework for measuring [fair value](https://asc.understandingaccounting.org/glossary/f/#fair-value "The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date."). This Subtopic uses present value techniques as one possible technique to measure the obligation to other beneficiaries of a [split-interest agreement](https://asc.understandingaccounting.org/glossary/s/#split-interest-agreement "An agreement in which a donor enters into a trust or other arrangement under which a not-for-profit entity (NFP) receives benefits that are shared with other beneficiaries. A typical split-interest agreement has the following two components: A lead interest A remainder interest."). See paragraphs [820-10-55-4 through 55-20](https://asc.understandingaccounting.org/asc/820/10/#820-10-55-4) for implementation guidance for using present value techniques if the measurement objective is fair value. ##### [958-30-35-2](https://asc.understandingaccounting.org/asc/958/30/#958-30-35-2) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:13.243Z to 2026-09-10T02:22:13.243Z Record version: sha256:6cd064f3d1b33a9af0923f329e839af83fccc26434fcb3bd98e8f2e0b7b21d14 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The measurement objective is fair value for the following split-interest obligations: 1. a Embedded derivatives subject to the measurement provisions of Topic 815 2. b Obligations for which the [not-for-profit entity](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.") (NFP) elects the fair value option pursuant to the Fair Value Option Subsections of Subtopic 825-10 3. c Obligations containing embedded derivatives that the NFP has irrevocably elected to measure in their entirety at fair value in conformity with Section 815-15-25. Additionally, in circumstances in which cash or other assets contributed by donors under split-interest agreements are held by independent trustees, such as a charitable trust for which a bank is a [trustee](https://asc.understandingaccounting.org/glossary/t/#trustee "An entity that has a duty to hold and manage assets for the benefit of a specified beneficiary in accordance with a charitable trust agreement. In some states, not-for-profit entities (NFPs) are organized under trust law rather than as corporations. Those NFPs are not trustees as defined because, under those statutes, they hold assets in trust for the community or some other broadly described group, rather than for a specific beneficiary."), or by other fiscal agents of the donors or otherwise not controlled by the NFP, the measurement objective for the beneficial interest in periods after the period of initial recognition is fair value. ##### [958-30-35-3](https://asc.understandingaccounting.org/asc/958/30/#958-30-35-3) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:13.243Z to 2026-09-10T02:22:13.243Z Record version: sha256:631a81f50ece52ac09ced45f964c94abf06d3c66435fc1e668ef59d38b46b8a9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In circumstances in which the fair value is measured at the present value of the future cash flows, all elements discussed in paragraph [820-10-55-5](https://asc.understandingaccounting.org/asc/820/10/#820-10-55-5), including discount rate assumptions, shall be revised at each measurement date to reflect current market conditions. #### Irrevocable Agreements ##### [958-30-35-4](https://asc.understandingaccounting.org/asc/958/30/#958-30-35-4) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:13.243Z to 2026-09-10T02:22:13.243Z Record version: sha256:de39dc80676206812a5a7ec8de0c8c4049db91e809e34db374f7914ed8c66cdf Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Assets held by the NFP under irrevocable split-interest agreements as investments shall be subsequently measured in conformity with Section 958-320-35, 958-321-35, or 958-325-35. ##### [958-30-35-5](https://asc.understandingaccounting.org/asc/958/30/#958-30-35-5) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:13.243Z to 2026-09-10T02:22:13.243Z Record version: sha256:e074beca858526166f2344c1c1c74eee582a5b16c9224bafd86180596ee22acd Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In addition, if assets and related liabilities are recognized under a split-interest agreement other than a [pooled income fund](https://asc.understandingaccounting.org/glossary/p/#pooled-income-fund "A trust in which donors are assigned a specific number of units based on the proportion of the fair value of their contributions to the total fair value of the pooled income fund on the date of the donor's entry to the pooled fund. Until a donor's death, the donor (or the donor's designated beneficiary or beneficiaries) is paid the actual income (as defined under the arrangement) earned on the donor's assigned units. Upon the donor's death, the value of these assigned units reverts to the NFP.") or net income unitrust (for example, a [charitable gift annuity](https://asc.understandingaccounting.org/glossary/c/#charitable-gift-annuity "A transfer of assets to a not-for-profit entity (NFP) in connection with a split-interest agreement that is in part a contribution and in part an exchange transaction. The NFP accepts the contribution and is obligated to make periodic stipulated payments to the donor or a third-party beneficiary for a specified period of time, usually either a specified number of years or until the death of the donor or third-party beneficiary."), [charitable lead trust](https://asc.understandingaccounting.org/glossary/c/#charitable-lead-trust "A trust established in connection with a split-interest agreement, in which a not-for-profit entity (NFP) receives distributions during the agreement's term. Upon termination of the trust, the remainder of the trust assets is paid to the donor or to third-party beneficiaries designated by the donor."), or [charitable remainder trust](https://asc.understandingaccounting.org/glossary/c/#charitable-remainder-trust "A trust established in connection with a split-interest agreement, in which the donor or a third-party beneficiary receives specified distributions during the agreement's term. Upon termination of the trust, a not-for-profit entity (NFP) receives the assets remaining in the trust.") agreement) for which an NFP serves as a trustee or fiscal [agent](https://asc.understandingaccounting.org/glossary/a/#agent "An entity that acts for and on behalf of another. Although the term agency has a legal definition, the term is used broadly to encompass not only legal agency, but also the relationships described in Topic 958. A recipient entity acts as an agent for and on behalf of a donor if it receives 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 specified beneficiary. A recipient entity acts as an agent for and on behalf of a beneficiary if it agrees to solicit assets from potential donors specifically for the beneficiary's use and to distribute those assets to the beneficiary. A recipient entity also acts as an agent if a beneficiary can compel the recipient entity to make distributions to it or on its behalf."), the following shall be reported in the NFP's statements of financial position, activities, and cash flows: 1. a Income earned on those assets 2. b Gains and losses 3. c Distributions made to other beneficiaries under the agreements. Those transactions generally are recognized as either an increase or a reduction in the liability to the other beneficiaries. For example, in subsequent periods, payments to an annuity beneficiary reduce the annuity liability. ##### [958-30-35-6](https://asc.understandingaccounting.org/asc/958/30/#958-30-35-6) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:13.243Z to 2026-09-10T02:22:13.243Z Record version: sha256:7c80300eb3d8f6a8a6acd8dfb86759ae1a843a82a4843c39d930a8a251aba3af Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. During the term of the agreement, the following adjustments to the liability shall be recognized as changes in the value of split-interest agreements in a statement of activities. In circumstances in which assets held in trust and related liabilities are recognized under lead and [remainder interest](https://asc.understandingaccounting.org/glossary/r/#remainder-interest "The right to receive all or a portion of the assets of a split-interest agreement remaining at the end of the agreement's term.") agreements for which an NFP serves as a trustee or fiscal agent, the liability for future payments to be made to other beneficiaries is measured at fair value if the NFP elects the fair value option as described in paragraph [958-30-35-2](https://asc.understandingaccounting.org/asc/958/30/#958-30-35-2). If the NFP does not elect the fair value option, the following transactions and events shall be included in the remeasurement of the liability: 1. a Amortization of the discount associated with the [contribution](https://asc.understandingaccounting.org/glossary/c/#contribution "An unconditional transfer of cash or other assets, as well as unconditional promises to give, to an entity or a reduction, settlement, or cancellation of its liabilities in a voluntary nonreciprocal transfer by another entity acting other than as an owner. Those characteristics distinguish contributions from:Exchange transactions, which are reciprocal transfers in which each party receives and sacrifices approximately commensurate valueInvestments by owners and distributions to owners, which are nonreciprocal transfers between an entity and its ownersOther nonreciprocal transfers, such as impositions of taxes or legal judgments, fines, and thefts, which are not voluntary transfers. In a contribution transaction, the resource provider often receives value indirectly by providing a societal benefit although that benefit is not considered to be of commensurate value. In an exchange transaction, the potential public benefits are secondary to the potential direct benefits to the resource provider. The term contribution revenue is used to apply to transactions that are part of the entity's ongoing major or central activities (revenues), or are peripheral or incidental to the entity (gains). See also Inherent Contribution and Conditional Contribution.") 2. b Revaluations of future payments to beneficiaries, based on changes in life expectancy, and other actuarial assumptions. In conformity with paragraph [310-10-30-6](https://asc.understandingaccounting.org/asc/310/10/#310-10-30-6), unless the measurement objective for periods after the period of initial recognition is fair value, the discount rate shall not be revised after initial recognition. ##### [958-30-35-7](https://asc.understandingaccounting.org/asc/958/30/#958-30-35-7) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:13.243Z to 2026-09-10T02:22:13.243Z Record version: sha256:fe86a615ca8113afd58e217b0dd5d0fa871cc706c8c921be55c8b932a1d22bbe Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If an NFP does not elect to report a split-interest obligation at fair value as described in paragraph [958-30-35-2](https://asc.understandingaccounting.org/asc/958/30/#958-30-35-2), a split-interest obligation with an embedded derivative is bifurcated into its debt host contract and embedded derivative. The debt host contract is the liability for the payment to the beneficiary that would be required if the fair value of the trust assets does not change over the specified period. The embedded derivative represents the liability (or contraliability) for the increase (or decrease) in the payments to the beneficiary due to changes in the fair value of the trust assets over the specified period. In circumstances in which the liability is measured using present value techniques, the discount rate assumptions on the debt host contract shall not be revised after initial recognition, consistent with the preceding paragraph. In accordance with paragraph [815-10-35-1](https://asc.understandingaccounting.org/asc/815/10/#815-10-35-1), the embedded derivative is subsequently measured at fair value. If the fair value of the embedded derivative is measured using present value techniques, all elements discussed in paragraph [820-10-55-5](https://asc.understandingaccounting.org/asc/820/10/#820-10-55-5), including the discount rate assumptions on the embedded derivative, shall be revised at each measurement date to reflect current market conditions. ##### [958-30-35-8](https://asc.understandingaccounting.org/asc/958/30/#958-30-35-8) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:13.243Z to 2026-09-10T02:22:13.243Z Record version: sha256:e6e146ec16bb576a238e484eb543cd677800e88603626ba08149dcedb2947de6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In conformity with paragraph [815-15-25-53](https://asc.understandingaccounting.org/asc/815/15/#815-15-25-53), if an NFP cannot reliably identify and measure the embedded derivative, the entire split-interest liability shall be measured at fair value (that is, all elements discussed in paragraph [820-10-55-5](https://asc.understandingaccounting.org/asc/820/10/#820-10-55-5), including discount rate assumptions, shall be revised to reflect current market conditions). ##### [958-30-35-9](https://asc.understandingaccounting.org/asc/958/30/#958-30-35-9) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:13.243Z to 2026-09-10T02:22:13.243Z Record version: sha256:fb2c4915562452950b0f6d67ff590d0be8b89ad34c35eae0298756c2e5295be4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Periodic income on a [pooled income fund](https://asc.understandingaccounting.org/glossary/p/#pooled-income-fund "A trust in which donors are assigned a specific number of units based on the proportion of the fair value of their contributions to the total fair value of the pooled income fund on the date of the donor's entry to the pooled fund. Until a donor's death, the donor (or the donor's designated beneficiary or beneficiaries) is paid the actual income (as defined under the arrangement) earned on the donor's assigned units. Upon the donor's death, the value of these assigned units reverts to the NFP.") or net-income unitrust and payments to the beneficiary shall be reflected as increases and decreases in a liability to the beneficiary. Amortization of the discount for future interest shall be recognized as a reduction in the deferred revenue account and as a change in the value of split-interest agreements. ##### [958-30-35-10](https://asc.understandingaccounting.org/asc/958/30/#958-30-35-10) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:13.243Z to 2026-09-10T02:22:13.243Z Record version: sha256:13e3bd12e8c5be8525fa8033f841d775a9c1e51ef0841175629ed9ea46b4b589 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Pursuant to paragraph [958-605-35-3](https://asc.understandingaccounting.org/asc/605/958/#605-958-35-3), if an NFP is the beneficiary of a split-interest agreement held by a third party and has an unconditional right to receive all or a portion of the specified cash flows from the assets held pursuant to that agreement, the NFP shall subsequently remeasure that beneficial interest at fair value. Changes in the fair value of the beneficial interest shall be recognized in the statement of activities. The change in the value of split-interest agreements is the change in the fair value of the NFP's beneficial interest, which shall be determined using the same valuation technique that was used to measure the asset initially. Distributions from the trust shall be reflected as a reduction in the beneficial interest. #### Revocable Agreements ##### [958-30-35-11](https://asc.understandingaccounting.org/asc/958/30/#958-30-35-11) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:13.243Z to 2026-09-10T02:22:13.243Z Record version: sha256:3808ab1e7eb19d125ad35e1bd77a571bcf82bf297afad03991b72af913319abc Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Assets held by the NFP under revocable split-interest agreements as investments shall be subsequently measured in conformity with Section 958-320-35, 958-321-35, or 958-325-35. ##### [958-30-35-12](https://asc.understandingaccounting.org/asc/958/30/#958-30-35-12) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:13.243Z to 2026-09-10T02:22:13.243Z Record version: sha256:41abb8a6c817498f6f45491fb6807c4e252929c8a13188ed388906e13bc276cb Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Income earned on assets held under such agreements that is not available for the NFP's unconditional use, and any subsequent adjustments to the carrying value of those assets, shall be recognized as adjustments to the assets and as refundable advances. Source downloaded (UTC): 2026-09-10T02:22:15.799Z to 2026-09-10T02:22:15.799Z Record version: sha256:d83ceb92b7d1bcf159430575f2d2e4c66f704179fceba622baa4e39eeef9d2ca Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 958-30-40: 40 Derecognition [Read section](https://asc.understandingaccounting.org/asc/958/30/#40-derecognition) SEC content: no ##### [958-30-40-1](https://asc.understandingaccounting.org/asc/958/30/#958-30-40-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:15.799Z to 2026-09-10T02:22:15.799Z Record version: sha256:fa5d3f03917de85c08b5a3c7042bc2f8b3f48aa04010b4eb2276bc024a22cb10 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Upon termination of a [split-interest agreement](https://asc.understandingaccounting.org/glossary/s/#split-interest-agreement "An agreement in which a donor enters into a trust or other arrangement under which a not-for-profit entity (NFP) receives benefits that are shared with other beneficiaries. A typical split-interest agreement has the following two components: A lead interest A remainder interest."), asset and liability accounts related to the agreement shall be closed. Any remaining amounts in the asset or liability accounts shall be recognized as changes in the value of split-interest agreements. Source downloaded (UTC): 2026-09-10T02:22:18.202Z to 2026-09-10T02:22:18.202Z Record version: sha256:50f569b7471f5a7c59b9992f5b661fb53d8468cd28f00880e1e7b07968c78161 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 958-30-45: 45 Other Presentation Matters [Read section](https://asc.understandingaccounting.org/asc/958/30/#45-other-presentation-matters) SEC content: no #### Classification of Net Assets ##### [958-30-45-1](https://asc.understandingaccounting.org/asc/958/30/#958-30-45-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:18.202Z to 2026-09-10T02:22:18.202Z Record version: sha256:8dace40fc4b36588e4e77761bd1b4195151ce9c09e51c971b8d34b05fd071bb8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Contribution](https://asc.understandingaccounting.org/glossary/c/#contribution "An unconditional transfer of cash or other assets, as well as unconditional promises to give, to an entity or a reduction, settlement, or cancellation of its liabilities in a voluntary nonreciprocal transfer by another entity acting other than as an owner. Those characteristics distinguish contributions from:Exchange transactions, which are reciprocal transfers in which each party receives and sacrifices approximately commensurate valueInvestments by owners and distributions to owners, which are nonreciprocal transfers between an entity and its ownersOther nonreciprocal transfers, such as impositions of taxes or legal judgments, fines, and thefts, which are not voluntary transfers. In a contribution transaction, the resource provider often receives value indirectly by providing a societal benefit although that benefit is not considered to be of commensurate value. In an exchange transaction, the potential public benefits are secondary to the potential direct benefits to the resource provider. The term contribution revenue is used to apply to transactions that are part of the entity's ongoing major or central activities (revenues), or are peripheral or incidental to the entity (gains). See also Inherent Contribution and Conditional Contribution.") revenues recognized under [split-interest agreements](https://asc.understandingaccounting.org/glossary/s/#split-interest-agreement "An agreement in which a donor enters into a trust or other arrangement under which a not-for-profit entity (NFP) receives benefits that are shared with other beneficiaries. A typical split-interest agreement has the following two components: A lead interest A remainder interest.") shall be classified as increases in [net assets with donor restrictions](https://asc.understandingaccounting.org/glossary/n/#net-assets-with-donor-restrictions "The part of net assets of a not-for-profit entity that is subject to donor-imposed restrictions (donors include other types of contributors, including makers of certain grants).") unlessthe donor gives the [not-for-profit entity](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.") (NFP) the immediate right to use, without restrictions, the assets it receives, in which case the contribution shall be classified as an increase in [net assets without donor restrictions](https://asc.understandingaccounting.org/glossary/n/#net-assets-without-donor-restrictions "The part of net assets of a not-for-profit entity that is not subject to donor-imposed restrictions (donors include other types of contributors, including makers of certain grants)."). 1. a [Subparagraph superseded by Accounting Standards Update No. 2016-14](https://asc.understandingaccounting.org/updates/asu-2016-14/). 2. b [Subparagraph superseded by Accounting Standards Update No. 2016-14](https://asc.understandingaccounting.org/updates/asu-2016-14/). ##### [958-30-45-2](https://asc.understandingaccounting.org/asc/958/30/#958-30-45-2) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:18.202Z to 2026-09-10T02:22:18.202Z Record version: sha256:367af4bc8c5c49fd5cc1ab5aefb74e95f5b672faeb4cd699d5bc7d87b53a452d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Under many [charitable gift annuity](https://asc.understandingaccounting.org/glossary/c/#charitable-gift-annuity "A transfer of assets to a not-for-profit entity (NFP) in connection with a split-interest agreement that is in part a contribution and in part an exchange transaction. The NFP accepts the contribution and is obligated to make periodic stipulated payments to the donor or a third-party beneficiary for a specified period of time, usually either a specified number of years or until the death of the donor or third-party beneficiary.") agreements, the assets received from the donor are held by the NFP as part of its general assets and are available for its general use. The contribution portion of a charitable gift annuity agreement shall be recognized as revenue without donor restrictions if both of the following criteria are met: 1. a The donor does not restrict the use of the assets contributed to the NFP. 2. b Neither the agreement nor laws and regulations require the assets received by the NFP to be invested until the income beneficiary's death. Additional annuity reserves required by state laws, as described in paragraph [958-30-50-2](https://asc.understandingaccounting.org/asc/958/30/#958-30-50-2), do not create donor restrictions. If either of those criteria is not met, the contribution shall be classified as [donor-restricted support](https://asc.understandingaccounting.org/glossary/d/#donor-restricted-support "Donor-restricted revenues or gains from contributions that increase net assets with donor restrictions (donors include other types of contributors, including makers of certain grants).") that increases net assets with donor restrictions and shall be reclassified as net assets without donor restrictions when [donor-imposed restrictions](https://asc.understandingaccounting.org/glossary/d/#donor-imposed-restriction "A donor stipulation (donors include other types of contributors, including makers of certain grants) that specifies a use for a contributed asset that is more specific than broad limits resulting from the following: The nature of the not-for-profit entity (NFP) The environment in which it operates The purposes specified in its articles of incorporation or bylaws or comparable documents for an unincorporated association. Some donors impose restrictions that are temporary in nature, for example, stipulating that resources be used after a specified date, for particular programs or services, or to acquire buildings or equipment. Other donors impose restrictions that are perpetual in nature, for example, stipulating that resources be maintained in perpetuity. Laws may extend those limits to investment returns from those resources and to other enhancements (diminishments) of those resources. Thus, those laws extend donor-imposed restrictions.") or legal requirements are satisfied. ##### [958-30-45-3](https://asc.understandingaccounting.org/asc/958/30/#958-30-45-3) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:18.202Z to 2026-09-10T02:22:18.202Z Record version: sha256:f9c3aa0cde3283d1059e6909e26928622d75a4e2e24cbf53753cc7623a2b9f5f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. During the term of the agreement, transactions and events that are recognized as changes in the value of split-interest agreements in a statement of activities shall be classified as [net assets with donor restrictions](https://asc.understandingaccounting.org/glossary/n/#net-assets-with-donor-restrictions "The part of net assets of a not-for-profit entity that is subject to donor-imposed restrictions (donors include other types of contributors, including makers of certain grants).") or [net assets without donor restrictions](https://asc.understandingaccounting.org/glossary/n/#net-assets-without-donor-restrictions "The part of net assets of a not-for-profit entity that is not subject to donor-imposed restrictions (donors include other types of contributors, including makers of certain grants)."), depending on the classification used when the [contribution](https://asc.understandingaccounting.org/glossary/c/#contribution "An unconditional transfer of cash or other assets, as well as unconditional promises to give, to an entity or a reduction, settlement, or cancellation of its liabilities in a voluntary nonreciprocal transfer by another entity acting other than as an owner. Those characteristics distinguish contributions from:Exchange transactions, which are reciprocal transfers in which each party receives and sacrifices approximately commensurate valueInvestments by owners and distributions to owners, which are nonreciprocal transfers between an entity and its ownersOther nonreciprocal transfers, such as impositions of taxes or legal judgments, fines, and thefts, which are not voluntary transfers. In a contribution transaction, the resource provider often receives value indirectly by providing a societal benefit although that benefit is not considered to be of commensurate value. In an exchange transaction, the potential public benefits are secondary to the potential direct benefits to the resource provider. The term contribution revenue is used to apply to transactions that are part of the entity's ongoing major or central activities (revenues), or are peripheral or incidental to the entity (gains). See also Inherent Contribution and Conditional Contribution.") revenue was recognized initially. ##### [958-30-45-4](https://asc.understandingaccounting.org/asc/958/30/#958-30-45-4) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:18.202Z to 2026-09-10T02:22:18.202Z Record version: sha256:c685df5d0b2ffe39e5d770766ce1ed72df9bd8cd1224ccf4a65cf95d5f38b718 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Amounts shall be reclassified from net assets with donor restrictions to net assets without donor restrictions as distributions are received by the NFP under the terms of the [split-interest agreement](https://asc.understandingaccounting.org/glossary/s/#split-interest-agreement "An agreement in which a donor enters into a trust or other arrangement under which a not-for-profit entity (NFP) receives benefits that are shared with other beneficiaries. A typical split-interest agreement has the following two components: A lead interest A remainder interest.") unless those assets are otherwise further restricted by the donor. In that case, they shall be reclassified to net assets without donor restrictions when the restrictions expire. ##### [958-30-45-5](https://asc.understandingaccounting.org/asc/958/30/#958-30-45-5) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:18.202Z to 2026-09-10T02:22:18.202Z Record version: sha256:bd88c0296b9a12ed1dfe6c9e771fd1f3e564d92a4b8d4711ac44d27320dbb16e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If assets previously distributed to the NFP become available for its general use upon termination of the split-interest agreement, a [reclassification of net assets](https://asc.understandingaccounting.org/glossary/r/#reclassification-of-net-assets "Simultaneous increase of one class of net assets and decrease of another. A reclassification of net assets usually results from a donor-imposed restriction (donors include other types of contributors, including makers of certain grants) being satisfied or otherwise lapsing.") shall be made from net assets with donor restrictions to net assets without donor restrictions. #### Presentation in the Statement of Financial Position ##### [958-30-45-6](https://asc.understandingaccounting.org/asc/958/30/#958-30-45-6) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:18.202Z to 2026-09-10T02:22:18.202Z Record version: sha256:fd835c82e9d7d8310e639337a12cd06762a846a7bfcebdd58b79af9dcaa8cc6b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Assets and liabilities recognized under split-interest agreements shall be reported separately from other assets and liabilities in a statement of financial position if not disclosed in the related notes (see paragraph [958-30-50-1(b)](https://asc.understandingaccounting.org/asc/958/30/#958-30-50-1)). #### Presentation in the Statement of Activities ##### [958-30-45-7](https://asc.understandingaccounting.org/asc/958/30/#958-30-45-7) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:18.202Z to 2026-09-10T02:22:18.202Z Record version: sha256:407225acb699aca89258710265644a601cdb8801ccd3cd66bfe05af666d9282a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Contribution](https://asc.understandingaccounting.org/glossary/c/#contribution "An unconditional transfer of cash or other assets, as well as unconditional promises to give, to an entity or a reduction, settlement, or cancellation of its liabilities in a voluntary nonreciprocal transfer by another entity acting other than as an owner. Those characteristics distinguish contributions from:Exchange transactions, which are reciprocal transfers in which each party receives and sacrifices approximately commensurate valueInvestments by owners and distributions to owners, which are nonreciprocal transfers between an entity and its ownersOther nonreciprocal transfers, such as impositions of taxes or legal judgments, fines, and thefts, which are not voluntary transfers. In a contribution transaction, the resource provider often receives value indirectly by providing a societal benefit although that benefit is not considered to be of commensurate value. In an exchange transaction, the potential public benefits are secondary to the potential direct benefits to the resource provider. The term contribution revenue is used to apply to transactions that are part of the entity's ongoing major or central activities (revenues), or are peripheral or incidental to the entity (gains). See also Inherent Contribution and Conditional Contribution.") revenue and changes in the value of split-interest agreements recognized under such agreements shall be reported as separate line items in a statement of activities if not disclosed in the related notes (see paragraph [958-30-50-1(e)](https://asc.understandingaccounting.org/asc/958/30/#958-30-50-1)). Paragraph [958-220-45-6](https://asc.understandingaccounting.org/asc/220/958/#220-958-45-6) states that the classification of contributions received as revenues or gains depends on whether the transactions are part of the NFP's ongoing major or central activities (revenues) or are peripheral or incidental to the NFP (gains). Source downloaded (UTC): 2026-09-10T02:22:19.926Z to 2026-09-10T02:22:19.926Z Record version: sha256:6bd3db3c0765135c43f61c75a8c081670d36ec39905b8d936a0cdc5f7f667fe7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 958-30-50: 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/958/30/#50-disclosure) SEC content: no ##### [958-30-50-1](https://asc.understandingaccounting.org/asc/958/30/#958-30-50-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:19.926Z to 2026-09-10T02:22:19.926Z Record version: sha256:a075421588d7cb57dc871e540c1370d3f57c8687b0a2b2f40a5222edc3a8d29e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The notes to financial statements shall include all of the following disclosures related to [split-interest agreements](https://asc.understandingaccounting.org/glossary/s/#split-interest-agreement "An agreement in which a donor enters into a trust or other arrangement under which a not-for-profit entity (NFP) receives benefits that are shared with other beneficiaries. A typical split-interest agreement has the following two components: A lead interest A remainder interest."): 1. a A description of the general terms of existing split-interest agreements 2. b Assets and liabilities recognized under split-interest agreements, if not reported separately from other assets and liabilities in a statement of financial position 3. c The basis used (for example, cost, lower of cost or fair value, [fair value](https://asc.understandingaccounting.org/glossary/f/#fair-value "The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.")) for recognized assets 4. d The discount rates and actuarial assumptions used, if present value techniques are used in reporting the assets and liabilities related to split-interest agreements 5. e [Contribution](https://asc.understandingaccounting.org/glossary/c/#contribution "An unconditional transfer of cash or other assets, as well as unconditional promises to give, to an entity or a reduction, settlement, or cancellation of its liabilities in a voluntary nonreciprocal transfer by another entity acting other than as an owner. Those characteristics distinguish contributions from:Exchange transactions, which are reciprocal transfers in which each party receives and sacrifices approximately commensurate valueInvestments by owners and distributions to owners, which are nonreciprocal transfers between an entity and its ownersOther nonreciprocal transfers, such as impositions of taxes or legal judgments, fines, and thefts, which are not voluntary transfers. In a contribution transaction, the resource provider often receives value indirectly by providing a societal benefit although that benefit is not considered to be of commensurate value. In an exchange transaction, the potential public benefits are secondary to the potential direct benefits to the resource provider. The term contribution revenue is used to apply to transactions that are part of the entity's ongoing major or central activities (revenues), or are peripheral or incidental to the entity (gains). See also Inherent Contribution and Conditional Contribution.") revenue recognized under such agreements, if not reported as a separate line item in a statement of activities 6. f Changes in the value of split-interest agreements recognized, if not reported as a separate line item in a statement of activities 7. g The disclosures required by the Fair Value Option Subsections of Subtopic 825-10, if a [not-for-profit entity](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.") (NFP) elects the fair value option pursuant to paragraph [958-30-35-2(b)](https://asc.understandingaccounting.org/asc/958/30/#958-30-35-2) or [958-30-35-2(c)](https://asc.understandingaccounting.org/asc/958/30/#958-30-35-2) 8. h The disclosures required by paragraphs [820-10-50-1C through 50-2](https://asc.understandingaccounting.org/asc/820/10/#820-10-50-1C) and [820-10-50-2B through 50-2E](https://asc.understandingaccounting.org/asc/820/10/#820-10-50-2B) in the format described in paragraph [820-10-50-8](https://asc.understandingaccounting.org/asc/820/10/#820-10-50-8), if the assets and liabilities of split-interest agreements are measured at fair value on a recurring basis in periods after initial recognition. ##### [958-30-50-2](https://asc.understandingaccounting.org/asc/958/30/#958-30-50-2) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:19.926Z to 2026-09-10T02:22:19.926Z Record version: sha256:45a03c5ba0cdfe51ecf22eeb8aee1b1d7e9a659d05631d18dc195bb3cb73d5d8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Additional annuity reserves may be required by the laws of the state where the NFP is located or by the state where the donor resides. Legally mandated reserves shall be disclosed in the notes to financial statements. If state law imposes other limitations on the NFP, such as limitations on the manner in which some net assets are invested, those limitations also shall be disclosed in the notes to financial statements. ##### [958-30-50-3](https://asc.understandingaccounting.org/asc/958/30/#958-30-50-3) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:19.926Z to 2026-09-10T02:22:19.926Z Record version: sha256:1b94ac4c3f2780a56c9d13f896342a111923ac5068fb22010621d3d0071720fa Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In addition, some NFPs voluntarily set aside additional reserves for unexpected actuarial losses. Voluntary reserves shall be included as part of [net assets without donor restrictions](https://asc.understandingaccounting.org/glossary/n/#net-assets-without-donor-restrictions "The part of net assets of a not-for-profit entity that is not subject to donor-imposed restrictions (donors include other types of contributors, including makers of certain grants)."), but may be presented as a separate component of [board-designated net assets](https://asc.understandingaccounting.org/glossary/b/#board-designated-net-assets "Net assets without donor restrictions subject to self-imposed limits by action of the governing board. Board-designated net assets may be earmarked for future programs, investment, contingencies, purchase or construction of fixed assets, or other uses. Some governing boards may delegate designation decisions to internal management. Such designations are considered to be included in board-designated net assets.") on the face of the statement of financial position (see paragraph [958-210-55-3](https://asc.understandingaccounting.org/asc/210/958/#210-958-55-3)). If not provided on the face of that statement, the reserves set aside by the NFP's governing board shall be disclosed in the notes in accordance with paragraph [958-210-50-3](https://asc.understandingaccounting.org/asc/210/958/#210-958-50-3) to disclose information about the amounts and purposes of board designations of net assets without donor restrictions. Source downloaded (UTC): 2026-09-10T02:22:23.587Z to 2026-09-10T02:22:23.587Z Record version: sha256:97692661524658b98391d4aa89caf953b1bd380bd43720c24ba161ff4ba10a22 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 958-30-55: 55 Implementation Guidance and Illustrations [Read section](https://asc.understandingaccounting.org/asc/958/30/#55-implementation-guidance-and-illustrations) SEC content: no ##### [958-30-55-1](https://asc.understandingaccounting.org/asc/958/30/#958-30-55-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:23.587Z to 2026-09-10T02:22:23.587Z Record version: sha256:d6ff71d70f824e60a7379f330f60bc94aa5112c8983aa6ff611a389d7e04fb3e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Section, which is an integral part of the requirements of this Subtopic, provides general guidance to be used in the recognition of [split-interest agreements](https://asc.understandingaccounting.org/glossary/s/#split-interest-agreement "An agreement in which a donor enters into a trust or other arrangement under which a not-for-profit entity (NFP) receives benefits that are shared with other beneficiaries. A typical split-interest agreement has the following two components: A lead interest A remainder interest."), particularly those with embedded derivatives. #### Illustrations ##### [958-30-55-2](https://asc.understandingaccounting.org/asc/958/30/#958-30-55-2) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:23.587Z to 2026-09-10T02:22:23.587Z Record version: sha256:8d44795c2fc69f27b616c98b72531f2a9b4d36dd1faf46f8fc7649e7e482534a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Example illustrates the guidance in Sections 958-30-25 and 958-30-30 for initial recognition and measurement of a [charitable remainder annuity trust](https://asc.understandingaccounting.org/glossary/c/#charitable-remainder-annuity-trust "A trust established in connection with a split-interest agreement, in which the donor or a third-party beneficiary receives distributions of a fixed amount during the agreement's term. Upon termination of the trust, a not-for-profit entity (NFP) receives the assets remaining in the trust."). ##### [958-30-55-3](https://asc.understandingaccounting.org/asc/958/30/#958-30-55-3) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:23.587Z to 2026-09-10T02:22:23.587Z Record version: sha256:fbe703a166627547119de5fccafcab445641dcc3ee4618107612a058e2c39b17 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Not-for-Profit Entity A (NFP A) receives $100,000 in cash from a donor under a charitable remainder annuity trust agreement designating NFP A as the [trustee](https://asc.understandingaccounting.org/glossary/t/#trustee "An entity that has a duty to hold and manage assets for the benefit of a specified beneficiary in accordance with a charitable trust agreement. In some states, not-for-profit entities (NFPs) are organized under trust law rather than as corporations. Those NFPs are not trustees as defined because, under those statutes, they hold assets in trust for the community or some other broadly described group, rather than for a specific beneficiary.") and charitable remainder beneficiary—a donee. The terms of the trust agreement require that NFP A, as trustee, invest the trust assets and pay $5,000 each year to an annuitant (an income beneficiary specified by the donor) for the remainder of the annuitant's life. Upon death of the annuitant, NFP A may use its [remainder interest](https://asc.understandingaccounting.org/glossary/r/#remainder-interest "The right to receive all or a portion of the assets of a split-interest agreement remaining at the end of the agreement's term.") for any purpose consistent with its mission. ##### [958-30-55-4](https://asc.understandingaccounting.org/asc/958/30/#958-30-55-4) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:23.587Z to 2026-09-10T02:22:23.587Z Record version: sha256:1793d4104dfb807a04560731f9767078bd613cf70c257e766e04317603820900 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. NFP A, as a donee, would recognize the [contribution](https://asc.understandingaccounting.org/glossary/c/#contribution "An unconditional transfer of cash or other assets, as well as unconditional promises to give, to an entity or a reduction, settlement, or cancellation of its liabilities in a voluntary nonreciprocal transfer by another entity acting other than as an owner. Those characteristics distinguish contributions from:Exchange transactions, which are reciprocal transfers in which each party receives and sacrifices approximately commensurate valueInvestments by owners and distributions to owners, which are nonreciprocal transfers between an entity and its ownersOther nonreciprocal transfers, such as impositions of taxes or legal judgments, fines, and thefts, which are not voluntary transfers. In a contribution transaction, the resource provider often receives value indirectly by providing a societal benefit although that benefit is not considered to be of commensurate value. In an exchange transaction, the potential public benefits are secondary to the potential direct benefits to the resource provider. The term contribution revenue is used to apply to transactions that are part of the entity's ongoing major or central activities (revenues), or are peripheral or incidental to the entity (gains). See also Inherent Contribution and Conditional Contribution.") received as revenue in the period the trust is established. The transfer is partially an exchange transaction—an agreement for annuity payments to a beneficiary over time—and partially a contribution. The contribution received by NFP A is the unconditional right to receive the remainder interest of the [annuity trust](https://asc.understandingaccounting.org/glossary/a/#annuity-trust "See Charitable Remainder Trust."). The amount of the contribution received by NFP A is the [fair value](https://asc.understandingaccounting.org/glossary/f/#fair-value "The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.") of the trust assets ($100,000 cash transferred) less the fair value of the estimated annuity payments (which is the present value of $5,000 to be paid annually over the expected life of the annuitant if present value techniques are used to measure fair value). Because NFP A must invest the underlying donated assets until the annuitant's death, the revenue recognized for this type of contribution—[donor-restricted support](https://asc.understandingaccounting.org/glossary/d/#donor-restricted-support "Donor-restricted revenues or gains from contributions that increase net assets with donor restrictions (donors include other types of contributors, including makers of certain grants).")—should be distinguished from revenues from gifts that are reported in the [net assets without donor restrictions](https://asc.understandingaccounting.org/glossary/n/#net-assets-without-donor-restrictions "The part of net assets of a not-for-profit entity that is not subject to donor-imposed restrictions (donors include other types of contributors, including makers of certain grants).") category (see paragraph [958-605-45-3](https://asc.understandingaccounting.org/asc/605/958/#605-958-45-3)). The death of the annuitant determines when the required annuity payments cease and when the trust expires and effectively removes all restrictions on the net assets of NFP A (see paragraph [958-30-45-5](https://asc.understandingaccounting.org/asc/958/30/#958-30-45-5)). ##### [958-30-55-5](https://asc.understandingaccounting.org/asc/958/30/#958-30-55-5) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:23.587Z to 2026-09-10T02:22:23.587Z Record version: sha256:38d1d0d5055b06bdd8993443f021b5342d5c59d7cb0469d282f95d1261b3b8ac Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-14](https://asc.understandingaccounting.org/updates/asu-2016-14/). ##### [958-30-55-6](https://asc.understandingaccounting.org/asc/958/30/#958-30-55-6) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:23.587Z to 2026-09-10T02:22:23.587Z Record version: sha256:dee2e44597539eb1c2ede9abc6f08e729431213d19fc3bbcc5e4c5f8c96fad35 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following Cases provide an understanding of the applicability of paragraphs [958-30-25-7 through 25-14](https://asc.understandingaccounting.org/asc/958/30/#958-30-25-7) to various split-interest agreements: 1. a Remainder interest—period-certain, fixed payments (Case A) 2. b Remainder interest—period-certain, variable payments (Case B) 3. c Remainder interest—life-contingent, variable or fixed payments (Case C) 4. d Remainder interest—period-certain-plus-life-contingent, fixed payments (Case D) 5. e Remainder interest—period-certain-plus-life-contingent, variable payments (Case E) 6. f Lead trust—period-certain, fixed or variable payments (Case F) 7. g Lead trust—life-contingent, fixed or variable payments (Case G) 8. h Lead trust—period-certain-plus-life-contingent, variable or fixed payments (Case H). ##### [958-30-55-7](https://asc.understandingaccounting.org/asc/958/30/#958-30-55-7) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:23.587Z to 2026-09-10T02:22:23.587Z Record version: sha256:b63d500ae879e194e75a294b2a87365a6ee468dece46eaef66cbb91ea3eae63d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Shares of common stock are contributed to the control of an NFP which is required to pay the donor or the donor's beneficiary an annual fixed cash payment for 20 years, after which time the remaining shares revert to the NFP. ##### [958-30-55-8](https://asc.understandingaccounting.org/asc/958/30/#958-30-55-8) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:23.587Z to 2026-09-10T02:22:23.587Z Record version: sha256:edbeaee63de3b737c08156bb77d22a825b5f17d7bb46cb5fc66f4c91c9a42484 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. During the term of the agreement (20 years), the NFP has a liability that does not require bifurcation of an embedded derivative. Because the periodic cash payment is a fixed dollar amount, the liability has no underlying and, thus, does not meet the criterion in paragraph [815-10-15-83(a)](https://asc.understandingaccounting.org/asc/815/10/#815-10-15-83) of the definition of a derivative instrument. Because there is no underlying, there is also no embedded derivative that warrants separate accounting under paragraph [815-15-25-1](https://asc.understandingaccounting.org/asc/815/15/#815-15-25-1). ##### [958-30-55-9](https://asc.understandingaccounting.org/asc/958/30/#958-30-55-9) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:23.587Z to 2026-09-10T02:22:23.587Z Record version: sha256:81c31a03d269ff6cd38624afa9f23faa5ae330253ad1583ac32aec6424f3ca51 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Shares of common stock are contributed to the control of NFP, which is required to make 20 annual cash payments to the donor or the donor's beneficiary that are equal to a specified percentage of the fair value of the assets as of the beginning of each annual period (that is, a [charitable remainder unitrust](https://asc.understandingaccounting.org/glossary/c/#charitable-remainder-unitrust "A trust established in connection with a split-interest agreement, in which the donor or a third-party beneficiary receives distributions of a fixed percentage of the fair value of the trust's assets during the agreement's term. Upon termination of the trust, a not-for-profit entity (NFP) receives the assets remaining in the trust.")). After the 20 payments have been made, the remaining shares will revert to the NFP. ##### [958-30-55-10](https://asc.understandingaccounting.org/asc/958/30/#958-30-55-10) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:23.587Z to 2026-09-10T02:22:23.587Z Record version: sha256:cdc425f6393813c6c37cddaaa9d9fc348b624ebe67a9b8def690abd30b66a938 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. During the term of the agreement (20 years), the NFP has a liability that must be bifurcated because it contains an embedded derivative that warrants separate accounting unless a fair value election is made pursuant to Section 815-15-25 or Fair Value Option Subsections 825-10. Under paragraph [815-15-25-1](https://asc.understandingaccounting.org/asc/815/15/#815-15-25-1), the liability represents a hybrid instrument that is composed of a debt host contract and an embedded equity-based derivative that is not clearly and closely related to the debt host contract and that would meet the definition of a derivative instrument if it were freestanding. That is, it meets all of the following criteria of paragraph [815-10-15-83](https://asc.understandingaccounting.org/asc/815/10/#815-10-15-83): 1. a It has an underlying (price of shares). 2. b It has a notional amount (number of shares in the trust at the beginning of each annual period). 3. c It satisfies the no-or-smaller initial net investment characteristic in paragraph [815-10-15-83(b)](https://asc.understandingaccounting.org/asc/815/10/#815-10-15-83). 4. d It would meet the net settlement characteristic in paragraph [815-10-15-83(c)](https://asc.understandingaccounting.org/asc/815/10/#815-10-15-83) (because each annual payment is adjusted for the effect of the embedded equity-based derivative). ##### [958-30-55-11](https://asc.understandingaccounting.org/asc/958/30/#958-30-55-11) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:23.587Z to 2026-09-10T02:22:23.587Z Record version: sha256:097a46a88fadfa7a590555faec98779a490a11e7d7182d5fa043caead0f5bda8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The debt host contract represents the liability for the series of 20 annual payments that would be required based on the assumption that the fair value of the common stock does not change over the 20-year period. The embedded equity-based derivative relates to the increase or decrease in each of the 20 annual payments due to changes in the fair value of the common stock. ##### [958-30-55-12](https://asc.understandingaccounting.org/asc/958/30/#958-30-55-12) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:23.587Z to 2026-09-10T02:22:23.587Z Record version: sha256:800ada98759d7baf94783d1fe33d6f25b3d72772994f3af4160631814004b787 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Shares of common stock are contributed to the control of an NFP, which is required to make annual cash payments to the donor or the donor's beneficiary that are either a fixed dollar amount or a specified percentage of the fair value of the assets at the beginning of each annual period until the death of the donor or the donor's beneficiary, upon which time the remaining shares will revert to the NFP. ##### [958-30-55-13](https://asc.understandingaccounting.org/asc/958/30/#958-30-55-13) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:23.587Z to 2026-09-10T02:22:23.587Z Record version: sha256:6eb2f18d1c3cff40a7942fef5104c611fa0168b5ccff121b43e29809db46b753 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. During the term of the agreement, the NFP has a liability that is not bifurcated because it is solely life-contingent and thus qualifies for the exception in paragraphs [815-10-15-52 through 15-57](https://asc.understandingaccounting.org/asc/815/10/#815-10-15-52) . ##### [958-30-55-14](https://asc.understandingaccounting.org/asc/958/30/#958-30-55-14) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:23.587Z to 2026-09-10T02:22:23.587Z Record version: sha256:c6b124e4168e8f5bf4e7b88b2c95f26538a6899f0d8fc5f8fea1cf6dc09cd438 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Shares of common stock are contributed to the control of an NFP, which is required to pay the donor or the donor's beneficiary an annual fixed cash payment for the longer of the beneficiary's remaining life or a specified period. The remaining shares then revert to the NFP. ##### [958-30-55-15](https://asc.understandingaccounting.org/asc/958/30/#958-30-55-15) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:23.587Z to 2026-09-10T02:22:23.587Z Record version: sha256:1bf4bc1458ac42b2ed529c06dd79bcbb1e5a81ec7b36664a03c69924612cca8d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. During the term of the agreement, the NFP has a liability that, for purposes of applying Topic 815, must be analyzed as consisting of the following two separate liabilities: 1. a A liability relating to the period-certain cash payments 2. b A liability relating to the possible additional cash payments that are contingent upon the beneficiary living beyond the end of the period-certain payments. ##### [958-30-55-16](https://asc.understandingaccounting.org/asc/958/30/#958-30-55-16) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:23.587Z to 2026-09-10T02:22:23.587Z Record version: sha256:a17e5f2e7be813d29d4dcf9a0f71b30c82df5a6f1c384ba60f309a91c3f1a3fe Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The NFP's liability does not require the bifurcation of any embedded derivative because: 1. a The portion of the liability related to the fixed period-certain payments has no underlying. 2. b The portion of the liability related to the possible life-contingent payments qualifies for the exception in paragraphs [815-10-15-52 through 15-57](https://asc.understandingaccounting.org/asc/815/10/#815-10-15-52) . ##### [958-30-55-17](https://asc.understandingaccounting.org/asc/958/30/#958-30-55-17) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:23.587Z to 2026-09-10T02:22:23.587Z Record version: sha256:5c15be2783cdb03a1b3298661ec2db534b132159e699f671c6e4e3c9c0816753 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Shares of common stock are contributed to the control of an NFP, which is required to pay the donor or the donor's beneficiary an annual cash payment equal to a specified percentage of the fair value of the assets at the beginning of each annual period for the greater of the beneficiary's remaining life or a specified period. The remaining assets revert to the NFP. ##### [958-30-55-18](https://asc.understandingaccounting.org/asc/958/30/#958-30-55-18) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:23.587Z to 2026-09-10T02:22:23.587Z Record version: sha256:f5ec8185439af8aefd7d27c73a0ac80aaf186221709f96f6da92c3b3c52818e0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. During the term of the agreement, the NFP has a liability that, for purposes of applying Topic 815, must be analyzed as consisting of the following two separate liabilities: 1. a A liability relating to the period-certain cash payments 2. b A liability relating to the possible additional cash payments that are contingent upon the beneficiary living beyond the end of the period-certain payments. ##### [958-30-55-19](https://asc.understandingaccounting.org/asc/958/30/#958-30-55-19) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:23.587Z to 2026-09-10T02:22:23.587Z Record version: sha256:190c4d81a5293eb38a9eddda9931a5e8581a86acc23cff2de2cb1f0e7c93ba5a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph [815-15-25-1](https://asc.understandingaccounting.org/asc/815/15/#815-15-25-1) requires that the equity-based derivative instrument embedded in the portion of the liability related to the period-certain variable cash payments be bifurcated from a debt host contract (consistent with the analysis in Case B). ##### [958-30-55-20](https://asc.understandingaccounting.org/asc/958/30/#958-30-55-20) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:23.587Z to 2026-09-10T02:22:23.587Z Record version: sha256:d0ac5e6ec5d4bc03877fb6ed81d58234b5790a8cd526340e9e9b9f5630fc496e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The equity-based derivative instrument embedded in the portion of the liability related to the possible life-contingent cash payments that can occur after the end of the specified period is not subject to Topic 815 because it qualifies for the exception in paragraphs [815-10-15-52 through 15-57](https://asc.understandingaccounting.org/asc/815/10/#815-10-15-52) . ##### [958-30-55-21](https://asc.understandingaccounting.org/asc/958/30/#958-30-55-21) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:23.587Z to 2026-09-10T02:22:23.587Z Record version: sha256:2eec6ee48b6d9f0538a86b903db8bd57199cd49b1fdc4b910de34e8cd2fb4046 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An NFP receives cash from a donor, which is invested by the NFP in common equity securities. The donor designates the NFP as lead beneficiary. The NFP receives an annual cash payment of either a fixed amount or a specified percentage of the fair value of the investment amount at the beginning of each annual period for a specified period of time. After that time, the remaining assets revert to the donor or the donor's beneficiary. ##### [958-30-55-22](https://asc.understandingaccounting.org/asc/958/30/#958-30-55-22) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:23.587Z to 2026-09-10T02:22:23.587Z Record version: sha256:c859509f8c70bf470ef23a76033a76d60a9d7f45d987132af7da030ab67158c8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. During the term of the agreement, the NFP has a liability that must be bifurcated. Under paragraph [815-15-25-1](https://asc.understandingaccounting.org/asc/815/15/#815-15-25-1), the liability represents a hybrid instrument that is composed of a debt host contract and an embedded equity-based derivative that is not clearly and closely related to the debt host contract and that would meet the definition of a derivative instrument if it were freestanding. That is, it meets all of the following criteria of paragraph [815-10-15-83](https://asc.understandingaccounting.org/asc/815/10/#815-10-15-83): 1. a It has an underlying (price of shares). 2. b It has a notional amount (number of shares at the beginning of each annual period). 3. c It satisfies the no-or-smaller initial net investment characteristic in paragraph [815-10-15-83(b)](https://asc.understandingaccounting.org/asc/815/10/#815-10-15-83). 4. d It would meet the net settlement characteristic in paragraph [815-10-15-83(c)](https://asc.understandingaccounting.org/asc/815/10/#815-10-15-83). ##### [958-30-55-23](https://asc.understandingaccounting.org/asc/958/30/#958-30-55-23) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:23.587Z to 2026-09-10T02:22:23.587Z Record version: sha256:d78b03578174988f7f334eca931f722f4fcc8a5efc1a2f05f112ce91491a34d8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Regardless of whether the [lead interest](https://asc.understandingaccounting.org/glossary/l/#lead-interest "The right to the benefits (cash flows or use) of assets during the term of a split-interest agreement, which generally starts upon the signing of the agreement and terminates at either of the following times: After a specified number of years (period-certain) Upon the occurrence of a certain event, commonly either the death of the donor or the death of the lead interest beneficiary (life-contingent).") payments are fixed or variable, the value of the liability representing the remainder interest—the assets remaining at the end of the agreement that will be paid to the donor or the donor's beneficiary—is affected by changes in the equity value, thus requiring the embedded equity-based derivative to be bifurcated from the host contract unless a fair value election is made pursuant to Section 815-15-25 or the Fair Value Option Subsections of Subtopic 825-10. ##### [958-30-55-24](https://asc.understandingaccounting.org/asc/958/30/#958-30-55-24) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:23.587Z to 2026-09-10T02:22:23.587Z Record version: sha256:f5178c56bbcb0deea038564590fbdabdc53ecb738e06a023199ab09bddd86a92 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An NFP receives cash from a donor, which is invested by the NFP in common equity securities. The donor designates the NFP as lead beneficiary. The NFP receives an annual cash payment of either a fixed dollar amount or a specified percentage of the fair value of the investment amount at the beginning of each annual period until the death of the donor or the donor's beneficiary, at which time the remaining assets revert to the donor or the donor's beneficiary. ##### [958-30-55-25](https://asc.understandingaccounting.org/asc/958/30/#958-30-55-25) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:23.587Z to 2026-09-10T02:22:23.587Z Record version: sha256:15f7aabc6446dee526506f8900626235495cb63179e79ce44fbccb4a4c737d98 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. During the term of the agreement, the NFP has a liability that is not subject to Topic 815 because the remainder interest liability relates to a single payment whose amount and timing is life-contingent and thus qualifies for the exception in paragraphs [815-10-15-52 through 15-57](https://asc.understandingaccounting.org/asc/815/10/#815-10-15-52) . ##### [958-30-55-26](https://asc.understandingaccounting.org/asc/958/30/#958-30-55-26) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:23.587Z to 2026-09-10T02:22:23.587Z Record version: sha256:a75962b43f7932c38bbaf903fa907943f28c0e76e8af366153a7ef900ccca8cd Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An NFP receives cash from a donor, which is invested by the NFP in common equity securities. The donor designates the NFP as lead beneficiary. The NFP receives an annual cash payment for either a specified percentage of the fair value of the assets at the beginning of each annual period or a fixed dollar amount. That cash payment is made for the greater of the beneficiary's (or the donor's) remaining life or a specified period. After that time, the remaining assets revert to the donor or the donor's beneficiary. ##### [958-30-55-27](https://asc.understandingaccounting.org/asc/958/30/#958-30-55-27) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:23.587Z to 2026-09-10T02:22:23.587Z Record version: sha256:a4be24fa66be0e6c90641d839bd6dea5fca4f1f21cae2f679b5344a887c6656c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. During the term of the agreement, the NFP has a liability that is not subject to Topic 815 because, unlike the liability in Case E the period-certain aspect of the liability cannot be separated from the life-contingent aspect of the liability (because there is only one payment whose timing and value are affected by mortality risk). Thus, the remainder interest liability relates to a single payment whose amount and timing is life-contingent and thus qualifies for the exception in paragraphs [815-10-15-52 through 15-57](https://asc.understandingaccounting.org/asc/815/10/#815-10-15-52) . ##### [958-30-55-28](https://asc.understandingaccounting.org/asc/958/30/#958-30-55-28) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:23.587Z to 2026-09-10T02:22:23.587Z Record version: sha256:78432af3b209dc42ab68ed790d9c5bb89c6a5ea8f83a1d4b0d617b91815aedf9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If payment occurs only when the beneficiary (or donor) is alive, such as in an agreement in which the period is for the lesser of the beneficiary's (donor's) remaining life or a specified period, then every payment is life-contingent and qualifies for the exception in paragraphs [815-10-15-52 through 15-57](https://asc.understandingaccounting.org/asc/815/10/#815-10-15-52) . ##### [958-30-55-29](https://asc.understandingaccounting.org/asc/958/30/#958-30-55-29) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:23.587Z to 2026-09-10T02:22:23.587Z Record version: sha256:f6a9b9f884b94f30c69478cbe1a43bd2bc3cc4066da7633622cae68b419710de Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If during the terms of a greater-of-period-certain-or-life-contingent agreement, the beneficiary dies before the end of the period-certain terms in the agreement, that change in circumstance eliminates the life-contingent aspect of the contract. Thus, the agreement is now only a period-certain agreement and mirrors the agreement outlined in Case F requiring bifurcation of the embedded derivative. ##### [958-30-55-30](https://asc.understandingaccounting.org/asc/958/30/#958-30-55-30) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:23.587Z to 2026-09-10T02:22:23.587Z Record version: sha256:0bf7ea2c5abb2ce6dd066ebffa000005c589f5703b52328ff22152fe54529d80 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Example provides the following journal entries related to the guidance in Sections 958-30-25, 958-30-35, and 958-30-40. - ![ ](https://asc.understandingaccounting.org/asc-img/GUID-250BC60E-AA41-4464-B3D8-B7FA757CCAEC-low.gif) Creation of the Agreement Debit Credit Credit Assets Held by a Third Party Charitable lead trust Beneficial interest in lead trust Contribution revenue (a) Charitable remainder trust Beneficial interest in remainder trust Contribution revenue (a) Assets Held by the NFP Contribution revenue (a) Charitable lead trust Assets held in charitable lead trust Liability for amounts held for others Contribution revenue (a) Charitable remainder trust Assets held in charitable remainder trust Liability under trust agreement Contribution revenue (a) Charitable gift annuity Assets Annuity payment liability Contribution revenue (a) Pooled income fund Assets of pooled income fund Discount for future interest (Deferred revenue) Contribution revenue (a) - ![ ](https://asc.understandingaccounting.org/asc-img/GUID-FE701418-8CC7-4FAC-8553-FBE505B3498D-low.gif) Investment Income and Changes in the Fair Value of Assets Held Under the Agreement (b) Debit Credit Assets Held by a Third Party Charitable lead trust No entry No entry Charitable remainder trust No entry No entry Assets Held by the NFP Charitable lead trust Assets held in charitable lead trust Liability for amounts held for others Charitable remainder trust Assets held in charitable remainder trust Liability under trust agreement Charitable gift annuity Assets Investment return (c) Pooled income fund Assets of pooled income fund Liability to life beneficiary - ![ ](https://asc.understandingaccounting.org/asc-img/GUID-DD7A6FCD-7FC2-4BCD-885B-8A9397F03382-low.gif) Distribution to Holder of Lead Interest Debit Credit Assets Held by a Third Party Charitable lead trust Cash Beneficial interest in lead trust Charitable remainder trust No entry No entry Assets Held by the NFP Charitable lead trust Cash Assets held in charitable lead trust Charitable remainder trust Liability under trust agreement Assets held in charitable remainder trust Charitable gift annuity Annuity payment liability Cash Pooled income fund Liability to life beneficiary Assets of pooled income fund Reclassification of Amounts Distributed to Holder of Lead Interest When All Restrictions Are Met Debit Credit Assets Held by a Third Party Charitable lead trust Net assets with donor restrictions— Reclassifications out "Net assets without donor restrictions— Reclassifications in" Charitable remainder trust Not applicable Not applicable Assets Held by the NFP Charitable lead trust Net assets with donor restrictions— Reclassifications out "Net assets without donor restrictions— Reclassifications in" Charitable remainder trust Not applicable Not applicable Charitable gift annuity Not applicable Not applicable Pooled income fund Not applicable Not applicable - ![ ](https://asc.understandingaccounting.org/asc-img/GUID-F690A09D-9F73-4495-A19A-82344ED927EE-low.gif) Revaluation of Obligation to Other Beneficiaries Debit Credit Assets Held by a Third Party Charitable lead trust Not applicable Not applicable Charitable remainder trust Not applicable Not applicable Assets Held by the NFP Charitable lead trust Liability for amounts held for others (d) "Change in value of split-interest agreements (a) (d)" Charitable remainder trust Liability under trust agreement (d) "Change in value of split-interest agreements (a) (d)" Charitable gift annuity Annuity payment liability (d) "Change in value of split-interest agreements (a) (d)" Adjustment of Deferred Revenue—including Amortization of Discount and Changes in Life Expectancy Debit Credit Pooled income fund Discount for future interest (deferred revenue) Change in value of split-interest agreements Change in Fair Value of Beneficial Interest Debit Credit Assets Held by a Third Party Charitable lead trust Beneficial interest in lead trust "Change in value of split-interest agreements (a) (d)" Charitable remainder trust Beneficial interest in remainder trust "Change in value of split-interest agreements (a) (d)" Assets Held by the NFP Charitable lead trust Not applicable Not applicable Charitable remainder trust Not applicable Not applicable Charitable gift annuity Not applicable Not applicable Pooled income fund Not applicable Not applicable - ![ ](https://asc.understandingaccounting.org/asc-img/GUID-9B3DBAAB-25AA-4B0A-8D7F-D1224894007C-low.gif) Termination of the Trust Debit Credit Credit Assets Held by a Third Party Charitable lead trust Change in value of split-interest agreements (a) Beneficial interest in lead trust Charitable remainder trust "Assets (for example, endowment or other investments)" Beneficial interest in remainder trust Change in value of split-interest agreements (a) (d) Assets Held by the NFP Change in value of split-interest agreements (a) (d) Charitable lead trust Liability for amounts held for others Assets held in charitable lead trust Change in value of split-interest agreements (a) (d) Charitable remainder trust Liability under trust agreement Change in value of split-interest agreements (a) Charitable remainder trust "Assets (for example, endowment or other investments)" Assets held in charitable remainder trust Charitable gift annuity Annuity payment liability Change in value of split-interest agreements (a) Pooled income fund Discount for future interest (deferred revenue) Change in value of split-interest agreements (a) Pooled income fund "Assets (for example, endowment or other investments)" Assets of pooled income fund All Agreements "Additionally, a reclassification may be necessary if net assets are no longer subject to time or purpose restrictions." (a) See Section 958-30-45 for classification of contribution revenue and change in the value of split-interest agreements. (b) Debit and credit could be reversed depending on whether the change in fair value of the assets held under the agreement is a gain or a loss. (c) "Alternatively, the annuity payment liability could be credited, resulting in the netting of investment return with other changes in the value of split-interest agreements." (d) Debit or credit could be reversed depending upon the whether the adjustment increases or decreases the liability.