The date on which the merger becomes effective. [FAS 164, paragraph 3(r), sequence 3.2.9]
Merger of Not-for-Profit Entities
A transaction or other event in which the governing bodies of two or more not-for- profit entities cede control of those entities to create a new not-for-profit entity. [FAS 164, paragraph 3(q), sequence 3.2.8]
Amend the following definition of Contribution in the Master Glossary, with
no link to a transition paragraph, as follows:
An unconditional transfer of cash or other assets to an entity or a settlement or cancellation of its liabilities in a voluntary nonreciprocal transfer by another entity acting other than as an owner. Those characteristics distinguish contributions from exchange transactions, which are reciprocal transfers in which each party receives and sacrifices approximately equal value; from investments by owners and distributions to owners, which are nonreciprocal transfers between an entity and its owners; and from other nonreciprocal transfers, such as impositions of taxes or legal judgments, fines, and thefts, which are not voluntary transfers. In a contribution transaction, the value, if any, returned to the resource provider is incidental to potential public benefits. In an exchange transaction, the potential public benefits are secondary to the potential proprietary benefits to the resource provider. The term contribution revenue is used to apply to transactions that are part of the entity’s ongoing major or central activities (revenues), or are peripheral or incidental to the entity (gains). See also Inherent Contribution.
Amend the following definitions of Acquiree, Business Combination, Equity
Interests, Goodwill, and Owners transition paragraph, as follows:
The business or businesses that the acquirer obtains control of in a business combination. This term also includes a nonprofit activity or business that a not- for-profit acquirer obtains control of in an acquisition by a not-for-profit entity. [FAS 164, paragraph 3(a), sequence 3.1.1]
A transaction or other event in which an acquirer obtains control of one or more businesses. Transactions sometimes referred to as true mergers or mergers of equals also are business combinations. See also Acquisition by a Not-for- Profit Entity.