Product Image

Financial Reporting Whitepaper: Measurement of Fair Value for Certain Transactions of Not-for-Profit Entities

Publisher: AICPA
Availability: Online Access
See Below To Add To Cart
View Online Catalog
Print This Page
Available Formats:  On-Demand | See All

Not-for-profit entities (NFPs) face various challenges in applying the provisions of Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 820, Fair Value Measurement, which codifies FASB Statement No. 157, Fair Value Measurements. To assist practitioners, the AICPA has issued a white paper, Measurement of Fair Value for Certain Transactions of Not-for-Profit Entities.

The white paper discusses fair value measurement for the following types of transactions:

  • Unconditional promises to give cash or other financial assets
  • Beneficial interests in trusts
  • Split interest agreements

Many of the challenges that NFPs encounter result from the fact that markets do not exist for these assets and liabilities. The white paper addresses, among other things, the following:

  • Valuation approaches and techniques, including variations of the income approach using probability-weighted cash flows or a single set of cash flows model that uses a risk-adjusted discount rate
  • Considerations for determining an appropriate valuation technique based on facts and circumstances, as well as considerations for the related inputs to the valuation model
  • Determination of an appropriate discount rate when using present value techniques
  • Use of market inputs when valuing split-interest obligations, including use of actuarial data and prices for annuity contracts
  • The unit-of-account for unconditional promises to give that are expected to be collected in one year or more and for beneficial interests in a trust
  • Disclosure considerations

AICPA members can access the white paper at no cost by logging in to the Financial Reporting Center of the AICPA Web site at by clicking here or you can add this product to your cart and download a free copy using the standard checkout process.

Non-members can purchase a PDF of the paper at a cost of $15.25 by adding it to your cart below. This product is an electronic download file that will be accessible immediately after completing your purchase. Access to this file – from the My Download page – expires 90 days from purchase date.

Please note this product purchase is non-refundable. For more information about this product or service concerns, please contact the AICPA Service Center at or call 888-777-7077.

On-Demand 2011
Product# FRC1201PDF
Availability: Online Access
AICPA Member:$0.00
Your Price:$15.25
To receive your AICPA member discount, Sign In now, or Register using your AICPA membership number.