FASB releases exposure draft on presentation and disclosure for gifts-in-kind.

    Image courtesy of FASB under Fair Use.

The exposure draft will require the amount of donated nonfinancial assets to be disclosed on a separate line in the statement of activities.  Some additional disclosures will be required. The main new disclosure is the technique and inputs used to value the GIK along with the principal market for the items.

The draft is titled Not-for-Profit Entities (Topic 958) / Presentation and Disclosures by Not-for-Profit Entities for Contributed Nonfinancial Assets.

A press release is available here.

As has been expected all along, the draft explicitly says it does not address valuation of GIK (i.e. measurement). It also does not touch on the issue of when to recognize contributions (recognition).

Valuation is the key issue creating controversy. Measurement is the leading concern of the IRS, FTC, 50 AGs, Michigan AG, California AG, California Assembly and Senate, and California Governor.

Document is only 22 pages long. I’ll have more details after having a chance to study it a while.

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