FASB issued Accounting Standards Update (ASU) No. 2020-07, Presentation and Disclosures by Not-for-Profit Entities for Contributed Nonfinancial Assets, to improve GAAP by increasing the transparency in the presentation and disclosure of contributed nonfinancial assets received by not-for-profit entities (NFPs). The term nonfinancial asset includes fixed assets (such as land, buildings, and equipment), use of fixed assets or utilities, materials and supplies, intangible assets, services, and unconditional promises of those assets.
The amendments in this ASU improve financial reporting by