Standards OverVIEW: FASB Issues Guidance for Not-For-Profit Presentation and Disclosure of Contributed Nonfinancial Assets


The ASU applies to all not-for-profit entities that receive contributed nonfinancial assets.  Nonfinancial assets commonly include fixed assets (land, buildings, equipment), the use of fixed assets or utilities, materials and supplies, intangible assets, services, and the unconditional promises of any of the abovementioned assets.


Main Provisions

The ASU addresses the presentation and disclosure of contributed nonfinancial assets.  The ASU does not change the recognition and measurement requirements for contributed nonfinancial assets.  A summary of the presentation and disclosure requirements are noted below.


  • Contributed nonfinancial assets should be presented as a separate line item in the Statement of Activities (separate from cash contributions and other financial assets)
  • Disclose the amount of contributed nonfinancial assets recognized in the financial statements by category that shows the type of contributed nonfinancial assets
  • Disclose for each category of contributed nonfinancial assets:
    • Qualitative information regarding whether the contributed nonfinancial assets were liquidated or utilized. If utilized, disclose a description of the programs or activities benefitted by contributions of nonfinancial assets 
    • The organization’s policy regarding liquidating rather than utilizing nonfinancial assets
    • A description of any donor-imposed restrictions on contributed nonfinancial assets
    • The valuation techniques and inputs used to determine the fair value of the nonfinancial assets at initial recognition
    • Disclose the principal or most advantageous market used to determine the fair value of the nonfinancial assets if the not-for-profit is prohibited by a donor-imposed restriction from selling or using the asset 


Effective Dates and Transition

The ASU is effective for annual periods beginning after June 15, 2021 and interim periods within annual periods beginning after June 15, 2022.  Early adoption is permitted and is applied on a retrospective basis.  Transition disclosures are required in the first interim and annual period of adoption.


This article is just a brief summary of the ASU. If you need further clarification, please contact your AHP professional or send an email to


Any accounting, business, or tax advice contained in this communication, including attachments and links to outside sources, is not intended as a thorough analysis of specific issues, nor a substitute for a formal opinion, nor was it written to be used to avoid tax related penalties.

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