The CPEA and the AICPA Technical Hotline frequently receive questions about factors that must be present to consolidate two or more NFP entities and whether an NFP’s equity investments in a for-profit company can be accounted for under the equity method. Apparently, a number of practitioners labor with the guidance in this area.
In order to assist our members in understanding the authoritative guidance in FASB Accounting Standards Codification (FASB ASC) 958, Not-for-Profit Entities, related to consolidation of NFPs, our