Wiley Not-for-Profit GAAP 2020

10INVESTMENTS

• Perspective and Issues
• Concepts, Rules, and Examples
  • Reporting Realized Gains and Losses
  • Fair Value Disclosures of Investments
    • Application of premiums and discounts in a fair value measurement
  • Investments in Certain Entities That Calculate Net Asset Value Per Share
  • Liquidity Restrictions and Other Investment Disclosure Considerations
  • Loans Acquired in a Transfer
  • Donor-Restricted Endowment Funds
  • Investment Income
    • Investment expenses
    • Pooling of investments
  • Alternative Investments
  • Impairment of Equity Securities Reported at Cost
  • Equity Method of Accounting
  • Accounting Rules
  • Equity Method Application
    • Differences in fiscal years
    • Income taxes
    • Changes in the equity method
    • Fiscal year discrepancies
• Disclosure Requirements
  • Investments
  • 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 ...