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

The nongovernment not-for-profit organization should report increases in the fair value of marketable debt securities as an increase in unrestricted net assets, unless restricted by donor stipulation or law. This is because debt securities are typically reported at fair value, rather than amortized cost. However, if there are donor restrictions in place or laws that dictate how the organization can use the funds generated by the debt securities, the increase in fair value may be reported as an increase in temporarily restricted or restricted net assets instead.

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