New AICPA white paper offers fair value guidance

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Abstract: Assessing the fair value of a nonprofit’s assets for financial statements isn’t an easy task. But a recent white paper issued by the American Institute of Certified Public Accountants (AICPA) should help clear up some uncertainty. This article notes that “Measurement of Fair Value for Certain Transactions of Not-for-Profit Entities” provides guidance for valuing three types of nonprofit transactions: unconditional promises to give cash or other financial assets; beneficial interests in trusts; and split interest agreements.