Tentative Board Decisions
Tentative Board decisions are provided for those interested in following the Board’s deliberations. All of the reported decisions are tentative and may be changed at future Board meetings.Wednesday, November 6, 2019 FASB Board Meeting
Not-for-profit reporting of gifts-in-kind. The Board discussed the scope, presentation, and disclosures of gifts-in-kind (GIKs).
The Board decided that the scope of the project should be limited to GIKs of nonfinancial assets.
Presentation and Disclosure
The Board decided to require a not-for-profit entity (NFP) to present GIKs of nonfinancial assets received in a separate line item in revenue in the statement of activities.
The Board decided to require an NFP to disclose GIKs received by category in the footnotes to the financial statements. An NFP also would be required to disclose the following for each category of GIKs received:
- Qualitative information about whether the GIKs were monetized or utilized and, if utilized, a description of the specific programs or other activities in which those GIKs were used
- Description of any associated donor restrictions
- The principal market (or most advantageous market) used in the valuation (in addition to the disclosures required by Topic 820, Fair Value Measurement, relating to valuation techniques and inputs used to arrive at a fair value measure).
The Board decided that an NFP should apply a retrospective method of transition.
The Board directed the staff to draft a proposed Accounting Standards Update for vote by written ballot, with a comment period ending on the later of 60 days after issuance or February 28, 2020.