# ASC 205-954-05: Presentation of Financial Statements — Health Care Entities — 05 Overview and Background

Source: FASB Accounting Standards Codification, Basic View

[Read online](https://asc.understandingaccounting.org/asc/205/954/#05-overview-and-background)

Study and research edition. Verify current requirements with the official source. Summaries, enrichment, and tags are machine-generated study aids. Paragraph html preserves source markup; snippet is abbreviated. Pending content is not necessarily effective.

Tables and mathematical or amendment markup are retained as HTML where Markdown would lose structure.

Source downloaded (UTC): 2026-09-09T22:55:32.986Z to 2026-09-09T22:55:32.986Z

Record version: sha256:312126d29941adf57ffc11934e0d2d4bc96db160876b1525e24aa4c46a167e22

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


## ASC 205-954-05: 05 Overview and Background

[Read section](https://asc.understandingaccounting.org/asc/205/954/#05-overview-and-background)

SEC content: no

##### [205-954-05-1](https://asc.understandingaccounting.org/asc/205/954/#205-954-05-1)

Pending content: no

Source downloaded (UTC): 2026-09-09T22:55:32.986Z to 2026-09-09T22:55:32.986Z

Record version: sha256:df95dcf542c5b2f89c762365cd2d5c926ba635bd92cfbd8e5ac5566950334b2d

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


This Subtopic provides guidance on the presentation of financial statements for health care entities. The financial reporting for not-for-profit, business-oriented entities and investor-owned health care entities is consistent except for transactions that clearly are not applicable. For example, not-for-profit, business-oriented entities would have nothing to report for shareholders' equity. On the other hand, investor-owned health care entities typically would not have anything to report for [contributions](https://asc.understandingaccounting.org/glossary/c/#contribution "An unconditional transfer of cash or other assets, as well as unconditional promises to give, to an entity or a reduction, 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 commensurate valueInvestments by owners and distributions to owners, which are nonreciprocal transfers between an entity and its ownersOther nonreciprocal transfers, such as impositions of taxes or legal judgments, fines, and thefts, which are not voluntary transfers. In a contribution transaction, the resource provider often receives value indirectly by providing a societal benefit although that benefit is not considered to be of commensurate value. In an exchange transaction, the potential public benefits are secondary to the potential direct 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 and Conditional Contribution.").

##### [205-954-05-2](https://asc.understandingaccounting.org/asc/205/954/#205-954-05-2)

Pending content: no

Source downloaded (UTC): 2026-09-09T22:55:32.986Z to 2026-09-09T22:55:32.986Z

Record version: sha256:4ac2059fb63d7d971eda49bbbc8b44ff6dcbfe1f8eee8d9172c3d241a2e63945

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


A not-for-profit, business-oriented health care entity also applies guidance in the following Subtopics subject to the more specific guidance that is provided in this Topic:

1.  a
    
    Not-for-Profit Entities—Presentation of Financial Statements, Subtopic 958-205
    
2.  b
    
    Not-for-Profit Entities—Statement of Financial Position, Subtopic 958-210
    
3.  c
    
    Not-for-Profit Entities—Income Statement—Reporting Comprehensive Income, Subtopic 958-220
    
4.  d
    
    Not-for-Profit Entities—Statement of Cash Flows, Subtopic 958-230.