The proposed ASU would require that Not-For-Profit entities present all contributed nonfinancial assets as a separate line item in the statement of activities, apart from contributions of cash or other financial assets. The term nonfinancial asset includes contributed services, fixed assets, materials and supplies, intangible assets and any unconditional promises of those assets.
The proposed ASU also requires a variety of disclosures including a depiction of contributed nonfinancial assets disaggregated by category. For each category identified, the not-for-profit must also disclose qualitative information about whether the nonfinancial assets received have been or are intended to be utilized, existence of any associated donor restrictions, and the valuation techniques and inputs used to arrive at a fair value measure. The illustrative disclosures include example categories such as buildings, pharmaceuticals, food, medical supplies, and contributed services. These disclosures may be provided in either a tabular or a narrative format.
The amendments in this proposed update would be applied retrospectively for all periods presented. The FASB is awaiting feedback from stakeholders before assigning an effective date. Comments are due on this proposed standard by April 10, 2020.
The full text of the Exposure Draft is available here.
Readers should not act upon information presented without individual professional consultation.