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 ...