Financial accounting standards normally address the reporting practices of for‐profit business entities. Search the FASB ASC...

Financial accounting standards normally address the reporting practices of for‐profit business entities. Search the FASB ASC database to discover what the FASB reporting requirements are (if any) for the reporting by not‐for‐profit entities of their outstanding liabilities. Cut and paste your findings, cite your source(s), and write a brief summary of your findings.

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This Statement requires an issuer to classify the following instruments as liabilities (or assets in some circumstances):

A financial instrument issued in the form of shares that is mandatorily redeemable—that embodies an unconditional obligation requiring the issuer to redeem it by transferring its assets at a specified or determinable date (or dates) or upon an event that is certain to occur

A financial instrument, other than an outstanding share, that, at inception, embodies an obligation to repurchase the issuer’s equity shares, or is indexed to such an obligation, and that requires or may require the issuer to settle the obligation by transferring assets (for example, a forward purchase contract or written put option on the issuer’s equity shares that is to be physically settled or net cash settled)

A financial instrument that embodies an unconditional obligation, or a financial instrument other than an outstanding share that embodies a conditional obligation, that the issuer must or may settle by issuing a variable number of its equity shares, if, at inception, the monetary value of the obligation is based solely or predominantly on any of the following:

A fixed monetary amount known at inception, for example, a payable settleable with a variable number of the issuer’s equity shares

Variations in something other than the fair value of the issuer’s equity shares, for example, a financial instrument indexed to the S&P 500 and settleable with a variable number of the issuer’s equity shares

Variations inversely related to changes in the fair value of the issuer’s equity shares, for example, a written put option that could be net share settled.

ekkarill92 answered 10 months ago

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