Which of the following would not be reported as an asset on the financial statements under FASB?

• A. An art painting donated for display in the museum's exhibit hall
• B. Cash donated for program support
• C. Pledged receivable from a donor
• D. Investments restricted for long-term endowment

Answer: (A)

Under FASB for not-for-profit organizations, assets on the statement of financial position typically include cash, pledges receivable (unconditional promises to give), and investments. A donation of a painting for display is an in-kind gift. Unless the organization has a specific policy to capitalize such collection items as assets, this kind of noncash contribution is usually recorded as part of contributions revenue instead of being shown as a balance-sheet asset. In other words, the donated artwork is not carried as an asset in the financial statements by default, making it the item that would not be reported as an asset.