ASC

Codification page

Page 2147480552

If consolidated financial statements are presented, the reporting entity (parent) shall disclose any restrictions made by entities outside of the reporting entity on distributions from the controlled not-for-profit entity (NFP) (subsidiary) to the parent and any resulting unavailability of the net assets of the subsidiary for use by the parent.
If, as described in paragraph 958-810-25-4, an NFP (the reporting entity) controls a related but separate NFP through a form other than majority ownership interest, sole corporate membership, or majority voting interest in the board of the other entity and has an economic interest in that other NFP, the reporting entity shall disclose all of the following information if it does not present consolidated financial statements:
  1. a
    Identification of the other NFP and the nature of its relationship with the reporting entity that results in control
  2. b
    Summarized financial data of the other NFP, which shall include the following information:
    1. 1
      Total assets, liabilities, net assets, revenue, and expenses
    2. 2
      Resources that are held for the benefit of the reporting entity or that are under its control.
  3. c
    The disclosures required by paragraphs
    850-10-50-1 through 50-6
    .
The existence of control or an economic interest, but not both, as described in paragraph 958-810-25-5, requires the disclosures in paragraphs
850-10-50-1 through 50-6
. (The existence of an economic interest does not necessarily cause the entities to be related parties. However, the disclosures in those paragraphs are required if an economic interest exists.)
An NFP (parent) that has one or more consolidated subsidiaries with a noncontrolling interest shall provide a schedule of changes in consolidated net assets attributable to the parent and the noncontrolling interest either in notes to the consolidated financial statements or on the face of financial statements, if practicable. That schedule shall reconcile beginning and ending balances of the parent's controlling interest and the noncontrolling interests for each class of net assets for which a noncontrolling interest exists during the reporting period.
The schedule required by the preceding paragraph shall, at a minimum, include:
  1. a
    A performance indicator, if the entity is a not-for-profit, business-oriented health care entity (see Section 954-10-15)
  2. b
    Amounts of discontinued operations
  3. c
    Subparagraph superseded by Accounting Standards Update No. 2015-01.
  4. d
    Changes in ownership interests in a subsidiary, including investments by and distributions to noncontrolling interests acting in their capacity as owners, which shall be reported separate from any revenues, expenses, gains, or losses and outside any measure of operations, if reported
  5. e
    An aggregate amount of all other changes in net assets without donor restrictions and net assets with donor restrictions for the period.
Paragraph 958-810-55-25 illustrates the required disclosures using a reconciling schedule in notes to the consolidated financial statements.

Text as published in the FASB Accounting Standards Codification, Basic View.