Updated Consolidation Guidance for NFPs that are GPs/LPs in For-Profit Limited Partnerships
Article Excerpt:
The Financial Accounting Standards Board (FASB or Board) has recently issued Accounting Standards Update (ASU) 2017-02, Not-for-Profit Entities—Consolidation (Subtopic 958-810): Clarifying When a Not-for-Profit Entity That Is a General Partner or a Limited Partner Should Consolidate a For-Profit Limited Partnership or Similar Entity.
The purpose of ASU 2017-02 is to update existing guidance and to clarify when non-profit entities that are general partners or limited partners should consolidate their holdings in a for-profit limited partnership.