Wiley Not-for-Profit GAAP 2017

10Investments

1. Perspective and Issues
2. Concepts, Rules, and Examples
   1. Reporting Realized Gains and Losses
   2. Fair Value Disclosures of Investments
   3. Investments in Certain Entities That Calculate Net Asset Value Per Share
   4. Liquidity Restrictions and Other Investment Disclosure Considerations
   5. Loans Acquired in a Transfer
   6. Donor-Restricted Endowment Funds
   7. Investment Income
   8. Alternative Investments
   9. Impairment of Equity Securities Reported at Cost
   10. Equity Method of Accounting
   11. Accounting Rules
   12. Equity Method Application
3. Disclosure Requirements
   1. Investments
   2. Equity Method

Perspective and Issues

The GAAP requirements for most investments held by not-for-profit organizations are primarily contained in FASB ASC 958-320 and 958-205. These GAAP requirements affect investments in equity securities with readily determinable fair values and all investments in debt securities. They also establish disclosure requirements for most investments held by not-for-profit organizations.

The FASB has also provided accounting guidance for derivative instruments and hedging activities, which is primarily contained in FASB ASC 815-10, 20, and 30. GAAP requires that entities recognize all derivatives as either assets or liabilities in the statement of financial position and measure those instruments at fair value. This guidance applies to not-for-profit organizations, which recognize the change in the fair value of derivatives as a change in net assets in the period of the change. Not-for-profit organizations are ...