ASU 2012-05

The objective of this Update is to address the diversity in practice about how to classify cash receipts arising from the sale of certain donated financial assets, such as securities, in the statement of cash flows of not-for-profit entities (NFPs). Some NFPs classify the cash receipts arising from the sale of donated financial assets in the statement of cash flows as investing cash inflows. Other entities classify the cash receipts from the sale of donated financial assets as either operating cash inflows or financing cash inflows, consistent with their treatment of inflows arising from cash contributions.