Expand
Resize
Add to favorites
A fundamental difference between NFPs and for-profit businesses is that NFPs lack ownership interests in the traditional sense. Unlike for-profit businesses that can distribute earnings to shareholders, any surpluses earned by an NFP must be reinvested in the organization. This absence of ownership interests means that NFPs have unique considerations with respect to defining the reporting entity (that is, consolidation) and in accounting for business combinations.
NFPs may engage in relationships with other NFPs, a variety of for-profit entities, and/or special purpose entities. Additionally, NFPs may engage in business combinations. While certain aspects of the business combination model are similar to that used by business entities, there are often differences in the way in which NFPs enter into, and effect, such transactions.
This chapter discusses the specialized guidance developed for NFPs in these areas. Refer to PwC’s Business combinations and noncontrolling interests guide and Consolidation and equity method of accounting guide for general information on accounting for business combinations and consolidation.
Expand

Welcome to Viewpoint, the new platform that replaces Inform. Once you have viewed this piece of content, to ensure you can access the content most relevant to you, please confirm your territory.

Your session has expired

Please use the button below to sign in again.
If this problem persists please contact support.

signin option menu option suggested option contentmouse option displaycontent option contentpage option relatedlink option prevandafter option trending option searchicon option search option feedback option end slide