not-for-profit entity

ASC 225-958 was the income statement subtopic for not-for-profit entities, but every paragraph in it (Sections 05, 15, 45, 50, and 55) was superseded by Maintenance Update 2017-19. The subtopic contains no remaining substantive guidance; its former content on presenting a not-for-profit entity's statement of activities was relocated as part of the Codification's reorganization of not-for-profit presentation guidance.

This subtopic addresses how a not-for-profit entity accounts for debt, in particular conduit financing obtained through state and local financing authorities. The core rule is that because the NFP is responsible for repaying tax-exempt bonds or other obligations issued on its behalf, the NFP recognizes that financing as a liability on its statement of financial position (470-958-25-1). Scope follows the NFP Overall Subtopic scope in Section 958-10-15.

This Subtopic adapts Topic 715 (pension and other postretirement benefits) for not-for-profit entities, which do not report other comprehensive income. Everywhere Topic 715 would require net gains or losses, prior service costs or credits, and transition assets or obligations to run through OCI/AOCI, an NFP instead recognizes those amounts as changes in net assets without donor restrictions that have not yet been reclassified into net periodic benefit cost. Those amounts, and the non-service components of net periodic benefit cost, are presented in separate line items outside any intermediate measure of operations (or performance indicator for business-oriented health care NFPs).

ASC 815-958 is a link-only subtopic: it contains no substantive rules of its own but points not-for-profit entities to the derivatives guidance that applies to them. It directs readers to 958-30-25-7 through 25-14 to decide whether an obligation arising from an irrevocable split-interest agreement contains an embedded derivative requiring bifurcation under 815-15-25-1, and (upon transition) to 815-20-25-3A and 815-20-25-143 for the timing of hedge documentation and hedge effectiveness assessments by certain NFPs.