Summary of Statement No. 124
Accounting for Certain Investments Held by Not-for-Profit Organizations (Issued 11/95)
Summary
This Statement establishes standards for accounting for certain
investments held by not-for-profit organizations. It requires that
investments in equity securities with readily determinable fair
values and all investments in debt securities be reported at fair
value with gains and losses included in a statement of activities.
This Statement requires certain disclosures about investments held
by not-for-profit organizations and the return on those
investments.
This Statement also establishes standards for reporting losses on investments held because of a donor's stipulation to invest a gift in perpetuity or for a specified term.
This Statement is effective for annual financial
statements issued for fiscal years beginning after December 15,
1995. Earlier application is encouraged. This Statement is applied
either by restating the financial statements of all prior years
presented or by recognizing the cumulative effect of the change in
the year of the change. The expiration of restrictions on
previously unrecognized net gains may be recognized
prospectively.