The AICPA recently released a white paper “Measurement of Fair Value for Certain Transactions of Not-for-Profit Entities” to help organizations navigate fair value measurement involving three key transaction types:
- Unconditional promises to give cash or other financial assets
- Beneficial interests in trusts
- Split interest agreements
The white paper covers many issues including:
- Valuation approaches and techniques
- Determining an appropriate valuation technique based on facts and circumstances and considerations for the related inputs to the valuation model
- Determination of an appropriate discount rate when using present value techniques
The white paper is free to AICPA members. Non-members can purchase the white paper for a nominal fee. For more details, visit AICPA’s website.
Still not sure? Visit a brief video testimonial from Brad Wilson, Archdiocese of Atlanta CFO, to see how Serenic Navigator enables the Archdiocese to achieve increased financial transparency and tighter safeguarding of assets.