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GAAP For Non-Profits › Economic Interest

Economic Interest

The CICA Handbook requires the nature and extent of any economic interest in a non-profit organization to be disclosed. (4450.45)

An economic interest exists where another organization’s assets must be used to produce revenue or provide services for the benefit of the reporting organization, for example, where:

An economic interest would also exist where the reporting organization is responsible for another organization’s liabilities.