How should a nongovernment not-for-profit organization generally report increases in the fair value of marketable debt securities in its statement of activities?

Question

Quizplus · Accepted Answer

Nongovernment not-for-profit organizations should generally report increases in the fair value of marketable debt securities in their statement of activities as an increase in net assets without donor restrictions, unless restricted by donor stipulation or law. This is because debt securities are reported at fair value and changes in fair value should be reflected in the statement of activities. However, if the donor has restricted the use of funds or if there are legal restrictions on the use of the funds, then the increase in fair value should be reported as an increase in net assets with donor restrictions.

How Should a Nongovernment Not-For-Profit Organization Generally Report Increases in the Fair