The fair value of a nonfinancial asset
is determined based on the asset's highest and best use, which normally is presumed its current use.
These patterns indicate that most families still hold a nonfinancial asset
, but they hold fewer types than were held in 2010.
NOTE: This first step is not an accounting requirement for off-balance sheet treatment of a nonfinancial asset
, but it may be a rating agency or investor requirement.
Other new disclosment: ASU 2022-04 requires a reporting entity to include disclosures about when it uses a nonfinancial asset
in a way that differs from its highest and best use when the asset is measured, at fair value or when its fair value In disclosed.
B) Forward contracts, options, futures, options on futures, swaps, and similar contracts, whether traded on exchanges or not, based on any rate, price, financial asset (including gold, silver, platinum, palladium, copper, or any other metal approved by the Board), nonfinancial asset
, or group of assets, other than a bank-ineligible security, (1) if:
Where a nonfinancial asset
is not involved--for example public accountants provide all accounting services to NFP Organization Z at no charge--Z would debit the fair value of the services to an expense account and credit the same amount to revenue.
Type of nonfinancial asset
1989 1992 1995 1998 Vehicles 5.
Because they enhance a nonfinancial asset
and thus meet the recognition requirements under Statement no.
Overall, the percentage of families in various groups owning some type of nonfinancial asset
changed little between 1992 and 1995.
Vehicles--including automobiles, motorcycles, vans, trucks, jeeps, sport utility vehicles, motor-homes, recreational vehicles, airplanes, and boats--are the most widely held nonfinancial asset
, with 86.
While the largest nonfinancial asset
for most families is their principal residence, their largest financial obligation is their mortgage for it.
, specifically residential property, played an important role in that wealth accumulation, accounting for two-thirds of median household assets in 2013.