Glossary
N
52 terms
Natural Expense Classification
A method of grouping expenses according to the kinds of economic benefits received in incurring those expenses. Examples of natural expense classifications include salaries and wages, employee benefits, professional services, supplies, interest expense, rent, utilities, and depreciation. (P) December 16, 2026; (N) December 16, 2026220-40-65-1A method of grouping expenses according to the types of economic benefits received in incurring those expenses. Examples of natural expense classifications include salaries and wages, employee benefits, nonemployee professional services, supplies, interest expense, rent, utilities, and depreciation.
natural resources
Under the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, natural resources are defined as land, fish, wildlife, biota, air, water, groundwater, drinking water supplies, and other such resources belonging to, managed or held in trust by, or otherwise controlled by the United States, state or local governments, foreign governments, or Indian tribes.
Used in 1 subtopic:410-30
near term
A period of time not to exceed one year from the date of the financial statements.
Used in 1 subtopic:275-10
Net Amount at Risk (Relating to Variable Annuity Contracts)
The guaranteed benefit in excess of the current account balance. For guarantees in the event of death, the net amount at risk is the minimum guaranteed amount available to the contract holder upon death in excess of the contract holder's account balance at the balance sheet date. For guarantees of amounts at annuitization, the net amount at risk is defined as the present value of the minimum guaranteed annuity payments available to the contract holder determined in accordance with the terms of the contract in excess of the current account balance.
Used in 1 subtopic:944-40
net asset information
Information regarding the net assets available for benefits.
Net Assets
The excess or deficiency of assets over liabilities of a not-for-profit entity, which is divided into two mutually exclusive classes according to the existence or absence of donor-imposed restrictions. See Net Assets with Donor Restrictions and Net Assets without Donor Restrictions.
Used in 9 subtopics:205-958210-958220-958230-10310-958320-958+3 more
net assets available for benefits
The difference between a plan's assets and its liabilities. For purposes of this definition, a plan's liabilities do not include participants' accumulated plan benefits.
Used in 7 subtopics:205-960310-960325-960325-962325-965960-20+1 more
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).
Used in 14 subtopics:205-958210-958220-954220-958230-10310-958+6 more
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).
Used in 16 subtopics:205-958210-954210-958220-954220-958230-10+6 more
net carrying amount of the extinguished debt
Net carrying amount of debt is the amount due at maturity, adjusted for unamortized premium, discount, and cost of issuance.
Used in 1 subtopic:470-50
net cash settlement
A form of settling a financial instrument under which the entity with a loss delivers to the entity with a gain cash equal to the gain.
net closed block liability
The carrying amount of closed block liabilities in excess of the carrying amount of closed block assets each adjusted to eliminate the effect of related amounts in accumulated other comprehensive income at the actuarial calculation date. Deferred acquisition costs are not assets of the closed block.
Used in 1 subtopic:805-944
net income
A measure of financial performance resulting from the aggregation of revenues, expenses, gains, and losses that are not items of other comprehensive income. A variety of other terms such as net earnings or earnings may be used to describe net income.
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.
Used in 1 subtopic:958-30
net incurred claims costs
The employer's share of the cost of providing the postretirement health care benefits covered by the plan to a plan participant; incurred claims cost net of retiree contributions. See Incurred Claims Cost (by Age).
Used in 1 subtopic:715-60
Net Investment in the Lease
For a sales-type lease, the sum of the lease receivable and the unguaranteed residual asset. For a direct financing lease, the sum of the lease receivable and the unguaranteed residual asset, net of any deferred selling profit.
net investment in the original loan
The net investment in an original loan includes the unpaid loan principal, any remaining unamortized net fees or costs, any remaining unamortized purchase premium or discount, and any accrued interest receivable.
Used in 1 subtopic:310-20
Net Periodic Pension Cost
The amount recognized in an employer's financial statements as the cost of a pension plan for a period. Components of net periodic pension cost are service cost, interest cost, actual return on plan assets, gain or loss, amortization of prior service cost or credit, and amortization of the transition asset or obligation existing at the date of initial application of Subtopic 715-30. The term net periodic pension cost is used instead of net pension expense because the service cost component recognized in a period may be capitalized as part of an asset such as inventory.
net periodic postretirement benefit cost
The amount recognized in an employer's financial statements as the cost of a postretirement benefit plan for a period. Components of net periodic postretirement benefit cost include service cost, interest cost, actual return on plan assets, gain or loss, amortization of prior service cost or credit, and amortization of the transition obligation or asset.
Net Realizable Value
Estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation.
Used in 9 subtopics:270-10275-10310-905330-10330-905360-10+3 more
Net worth
The difference between total assets and total liabilities, after deducting estimated income taxes on the differences between the estimated current values of assets and the estimated current amounts of liabilities and their tax bases.
Used in 1 subtopic:274-10
network affiliation agreements
A broadcaster may be affiliated with a network under a network affiliation agreement. Under the agreement, the station receives compensation for the network programming that it carries based on a formula designed to compensate the station for advertising sold on a network basis and included in network programming. Program costs, a major expense of television stations, are generally lower for a network affiliate than for an independent station because an affiliate does not incur program costs for network programs.
Noncompliance Environmental Credit
(P) December 16, 2027; (N) December 16, 2028818-10-65-1An environmental credit recognized as an asset in accordance with Topic 818 that is not a compliance environmental credit.
nonconsenting class
A class of creditors or stockholders that does not approve the proposed plan.
Used in 1 subtopic:852-10
Noncontributory Plan
A pension or other postretirement benefit plan under which participants do not make contributions.
Used in 1 subtopic:965-10
noncontrolling interest
The portion of equity (net assets) in a subsidiary not attributable, directly or indirectly, to a parent. A noncontrolling interest is sometimes called a minority interest.
Used in 23 subtopics:220-10235-932260-10323-10323-970350-20+6 more
Nonfinancial Asset
An asset that is not a financial asset. Nonfinancial assets include land, buildings, use of facilities or utilities, materials and supplies, intangible assets, or services.
nonforfeiture benefits
Those benefits in a life insurance contract that the policyholder does not forfeit, even for failure to pay premiums. Nonforfeiture benefits usually include cash value, paid-up insurance value, or extended-term insurance value.
Used in 1 subtopic:944-40
nongovernmental entities
An entity that is not required to issue financial reports in accordance with guidance promulgated by the Governmental Accounting Standards Board or the Federal Accounting Standards Advisory Board.
nonintegrated contract features
A contract feature in which the benefits provided are not related or dependent on the provisions of the base contract.
Used in 1 subtopic:944-30
nonmanaging investors
See Nonregistered Investment Partnerships—Financial Highlights.
Used in 1 subtopic:205-946
Nonmember of an Agricultural Cooperative
A nonmember patron is not entitled to voting privileges. A nonmember patron may or may not be entitled to share in patronage distributions, depending on the articles and bylaws of the agricultural cooperative or on other agreements.
Used in 9 subtopics:205-905310-905325-905330-905405-905505-905+3 more
nonmonetary assets or liabilities
Nonmonetary assets and liabilities are assets and liabilities other than monetary ones. Examples are inventories; investments in common stocks; property, plant, and equipment; and liabilities for rent collected in advance.
Used in 1 subtopic:845-10
nonparticipating annuity contract
An annuity contract that does not provide for the purchaser to participate in the investment performance or in other experience of the insurance entity.
Used in 1 subtopic:715-30
nonparticipating insurance contracts
An insurance contract that does not provide for the purchaser to participate in the investment performance or in other experience of the insurance entity. See Insurance Contract.
Nonperformance Risk
The risk that an entity will not fulfill an obligation. Nonperformance risk includes, but may not be limited to, the reporting entity's own credit risk.
Nonprofit Activity
An integrated set of activities and assets that is capable of being conducted and managed for the purpose of providing benefits, other than goods or services at a profit or profit equivalent, as a fulfillment of an entity's purpose or mission (for example, goods or services to beneficiaries, customers, or members). As with a not-for-profit entity, a nonprofit activity possesses characteristics that distinguish it from a business or a for-profit business entity.
Used in 14 subtopics:205-10205-20350-10350-20350-30360-10+6 more
Nonpublic Entity
Any entity that does not meet any of the following conditions: Its debt or equity securities trade in a public market either on a stock exchange (domestic or foreign) or in an over-the-counter market, including securities quoted only locally or regionally. It is a conduit bond obligor for conduit debt securities that are traded in a public market (a domestic or foreign stock exchange or an over-the-counter market, including local or regional markets). It files with a regulatory agency in preparation for the sale of any class of debt or equity securities in a public market. It is required to file or furnish financial statements with the Securities and Exchange Commission. It is controlled by an entity covered by criteria (a) through (d).
Used in 16 subtopics:105-10220-10350-30360-20405-40430-954+6 more
Nonreciprocal Transfer
Nonreciprocal transfer is a transfer of assets or services in one direction, either from an entity to its owners (whether or not in exchange for their ownership interests) or to another entity, or from owners or another entity to the entity. An entity's reacquisition of its outstanding stock is an example of a nonreciprocal transfer.
Used in 14 subtopics:220-40350-10360-972405-20605-958805-20+6 more
nonrefundable minimum guarantee
Amount paid or payable by a customer in a variable fee arrangement that guarantees an entity a minimum fee on that arrangement. Such a guarantee applies to an amount paid by a customer immediately and an amount that the customer has a legally binding commitment to pay over a license period.
Used in 1 subtopic:926-20
Nonretirement Postemployment Benefits
All types of benefits, other than those provided through a pension or other postretirement plan (see Subtopics 715-30 and 715-60), provided to former or inactive employees, their beneficiaries, and covered dependents.
nonutility generators
Entities owning electric generating plants built either for their own energy needs or to sell power, usually to rate-regulated entities, under long-term power sales contracts.
Nonvested benefit information
The actuarial present value of nonvested accumulated plan benefits.
Used in 1 subtopic:960-10
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.
Used in 62 subtopics:205-20205-958210-958220-40220-958230-958+6 more