FASB issues new requirements for NFP gifts-in-kind
Defining Issues | September 2020
KPMG reports on enhanced presentation and disclosure for not-for-profits that receive contributed nonfinancial assets.
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ASU 2020-07 addresses stakeholders’ concerns regarding lack of transparency about how certain gifts-in-kind are valued and used in an NFP’s programs and activities.
Applicability
- All not-for-profit entities that receive contributed nonfinancial assets
Relevant dates
| Effective | |
|---|---|
Annual periods – Fiscal years beginning after | June 15, 2021 |
Interim periods – In fiscal years beginning after | June 15, 2022 |
Early adoption allowed? | Yes |
Key Impacts:
- Contributed nonfinancial assets are presented in a separate line item in the statement of activities – i.e. apart from contributions of cash and other financial assets.
- The amount of these contributions is disaggregated by type in the notes.
- For each type, the following is disclosed, if applicable:
- Qualitative information about whether the contributions were either monetized or used during the reporting period.
- Description of the programs or other activities in which the contributions were used.
- Policy about monetizing contributed nonfinancial assets.
- Donor-imposed restrictions.
- Valuation techniques and inputs used in the fair value measurement at initial recognition.
- The principal (or most advantageous) market used in the fair value measurement if it is a market in which the NFP is prohibited by a donor-imposed restriction from selling or using the contributed nonfinancial asset.
- The amendments apply on a retrospective basis.
Report contents
- Applicability
- Key facts and impacts
- Which gifts-in-kind are in scope?
- Principal (or most advantageous) market
- Format of disclosure
- Effective dates and transition
Download the document:
FASB enhances presentation and disclosure requirements for NFP gifts-in-kind
Download PDFMeet the team
Kayla Futch
Managing Director, Dept. of Professional Practice, KPMG US
Kayla Futch
Managing Director, Dept. of Professional Practice, KPMG US