FASB Accounting Standards Update: Consolidation Guidance for Not-for-Profits

FASB Accounting Standards Update: Consolidation Guidance for Not-for-Profits

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By Doug K. Nickerson, CPA, CGFM, CFE, CIA | Partner | Not-for-Profit Team

In January 2017, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2017-02, Not-for-Profit Entities – Consolidation (Subtopic 958-810). This new standard addresses consolidation guidance to clarify when a not-for-profit entity (NFP) that is a general partner or a limited partner should consolidate a for-profit limited partnership or similar entity once the amendments of ASU 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis, become effective. Under current guidance, a NFP that is a general partner or limited partner of a for-profit limited partnership or similar entity is required to apply the consolidation guidance in Subtopic 810-20, unless the partnership is reported at fair value.  Under the amendments in ASU 2015-02, Subtopic 810-20 will no longer exist and therefore create some uncertainty and complexity in determining whether a NFP general partner or limited partner should consolidate a for-profit limited partnership. ASU 2017-02 retains the consolidation guidance that currently exists (pre-adoption of ASU 2015-02) in Subtopic 810-20 by including it in Subtopic 958-810, specific to not-for-profit entities. The amendments in this ASU are effective for not-for-profit entities for fiscal years beginning after December 15, 2016.  Early adoption is permitted. Read the full guidance here. Questions on how this new standard may affect your not-for-profit organization? Contact us. We can help.  Not-for-Profit Team | 804.747.0000 | Email


The information contained within this article is provided for informational purposes only and is current as of the date published. Online readers are advised not to act upon this information without seeking the service of a professional accountant, as this article is not a substitute for obtaining accounting, tax, or financial advice from a professional accountant.


About the Author

Doug shares his real estate and construction accounting insights with his clients to help them achieve their financial goals. He is a member of Keiter’s Real Estate and Construction team. Doug has over 18 years of experience in corporate accounting and public accounting providing audit and consulting services. Read more of Doug’s insights on our blog.

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