Overview

This new Section (which replaces Tangible Capital Assets Held by Not-For-Profit Organizations, Section 4431), requires the application of Property, Plant and Equipment, Section 3061, and Asset Retirement Obligations, Section 3110, in Part II of the Handbook for tangible capital assets held by not-for-profit organizations, and provides guidance on contributed assets and write-downs of assets.

The main changes from Section 4431 are as follows:

• Tangible capital assets are written down to fair value or replacement cost to reflect partial impairments when conditions indicate that the assets no longer contribute to an organization's ability to provide goods and services, or that the value of future economic benefits or service potential associated with the tangible capital assets are less than their net carrying amounts.
• Examples describe conditions that may indicate impairment of tangible capital assets.
• Disclosure requirements in Impairment of Long-lived Assets, Section 3063 in Part II, are required for impairments of tangible capital assets.

History of Section 4433

Note: The above summary does not include details of consequential amendments made as the result of other projects.

Not-for-Profit Ad­vi­sory Com­mit­tee meet­ings

• None

Amend­ments un­der con­sid­er­a­tion

• None