# ASC 205-954: Presentation of Financial Statements — Health Care Entities Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/205/954/) 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): 2026-09-09T22:55:29.204Z to 2026-09-09T22:55:43.454Z Record version: sha256:df2fd3f90682f0a899090983de4ef7c75e96a5fd9d62a52d6b6aba5c08a94a49 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 205-954: Presentation of Financial Statements — Health Care Entities ### Machine-generated study aids ```json { "summary": "ASC 205-954 sets the basic financial statement presentation requirements for health care entities, both not-for-profit business-oriented and investor-owned. It requires a complete set of statements — balance sheet, statement of operations, statement of changes in equity (or net assets), statement of cash flows, and notes (205-954-45-1) — and permits descriptive alternative titles except that the cash flow statement should be titled \"Statement of Cash Flows\" (205-954-45-2). Presentation is essentially the same for both ownership forms except for items that are inapplicable, such as shareholders' equity for NFPs and contributions for investor-owned entities (205-954-05-1).", "key_points": [ "The basic financial statements of a health care entity are a balance sheet, a statement of operations, a statement of changes in equity (or net assets), a statement of cash flows, and notes to the financial statements (205-954-45-1).", "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 — NFPs report no shareholders' equity, and investor-owned entities typically report no contributions (205-954-05-1).", "Alternative descriptive titles may be used (for example, statement of financial position instead of balance sheet), but a statement of cash flows should only be titled 'Statement of Cash Flows' (205-954-45-2).", "A not-for-profit, business-oriented health care entity also applies Subtopics 958-205, 958-210, 958-220, and 958-230, subject to the more specific guidance in Topic 954 (205-954-05-2).", "The scope of this Subtopic is the same as the Overall Subtopic scope in Section 954-10-15 (205-954-15-1).", "Former paragraphs 205-954-45-8 and 45-9 were superseded by ASU 2016-14 (the NFP financial statement presentation update)." ], "categories": [ "Presentation", "Financial statement presentation", "Industry-specific", "Not-for-profit" ], "audience_level": "intermediate", "student_note": "This is a short industry-specific overlay: the takeaway is the required set of five statement components and that NFP health care entities follow the general NFP presentation Subtopics (958-205 through 958-230) unless Topic 954 says otherwise. A common misunderstanding is assuming NFP health care entities present like other NFPs in all respects — they use a business-oriented \"statement of operations\" and the more specific Topic 954 guidance controls.", "related_topics": [ "954-10", "958-205", "958-210", "958-220", "958-230", "954-225" ], "key_concepts": [ "health care entities", "not-for-profit business-oriented entity", "investor-owned entity", "statement of operations", "complete set of financial statements", "net assets", "financial statement titles" ] } ``` Source downloaded (UTC): 2026-09-09T22:55:29.204Z to 2026-09-09T22:55:29.204Z Record version: sha256:1955a760a5030c7268633dbabcf61c82ce25973328b20149f88053323d81bd9b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 205-954-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/205/954/#00-status) SEC content: no ##### [205-954-00-1](https://asc.understandingaccounting.org/asc/205/954/#205-954-00-1) Pending content: no Source downloaded (UTC): 2026-09-09T22:55:29.204Z to 2026-09-09T22:55:29.204Z Record version: sha256:777cff4ef0974ed66b1a7dea67f1fca4ae44a505f9542ad2b135ea50587b365b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following table identifies the changes made to this Subtopic.
ParagraphActionAccounting Standards UpdateDate
Conditional ContributionAddedAccounting Standards Update No. 2018-0806/21/2018
ContributionAmendedAccounting Standards Update No. 2018-0806/21/2018
ContributionAmendedAccounting Standards Update No. 2010-0701/28/2010
Donor-Imposed ConditionAddedAccounting Standards Update No. 2018-0806/21/2018
Promise to GiveAddedAccounting Standards Update No. 2018-0806/21/2018
954-205-45-8SupersededAccounting Standards Update No. 2016-1408/18/2016
954-205-45-9SupersededAccounting Standards Update No. 2016-1408/18/2016
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. Source downloaded (UTC): 2026-09-09T22:55:37.004Z to 2026-09-09T22:55:37.004Z Record version: sha256:29f4716b09ffd3abaa87cd5fc00a2a70649f62fe325f4fe5cbf53ffa3224a86e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 205-954-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/205/954/#15-scope-and-scope-exceptions) SEC content: no #### Overall Guidance ##### [205-954-15-1](https://asc.understandingaccounting.org/asc/205/954/#205-954-15-1) Pending content: no Source downloaded (UTC): 2026-09-09T22:55:37.004Z to 2026-09-09T22:55:37.004Z Record version: sha256:97136d3b8fc67332e8309e2f6e8f95476ef8ac05d1be83089c5a6595bc279451 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section 954-10-15. ##### [205-954-15-2](https://asc.understandingaccounting.org/asc/205/954/#205-954-15-2) Pending content: no Source downloaded (UTC): 2026-09-09T22:55:37.004Z to 2026-09-09T22:55:37.004Z Record version: sha256:4d51ccca7a7ffca0b9320e34c47d468f6bf6f575069ee72bea13f666708cd195 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph not used](https://asc.understandingaccounting.org/updates/page-1833002/). Source downloaded (UTC): 2026-09-09T22:55:41.687Z to 2026-09-09T22:55:41.687Z Record version: sha256:8513dd639f9f8f0168fc1f0b9043f3c1d328d0d70f6b07ce2dd215f2be48cbf8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 205-954-45: 45 Other Presentation Matters [Read section](https://asc.understandingaccounting.org/asc/205/954/#45-other-presentation-matters) SEC content: no #### Complete Set of Financial Statements ##### [205-954-45-1](https://asc.understandingaccounting.org/asc/205/954/#205-954-45-1) Pending content: no Source downloaded (UTC): 2026-09-09T22:55:41.687Z to 2026-09-09T22:55:41.687Z Record version: sha256:c7867ed1c7df90dfaa69d5126e960fe0fe31115139cb8082ea2fca5eebd1b1b5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The basic financial statements of health care entities consist of a balance sheet, a statement of operations, a statement of changes in equity (or net assets), a statement of cash flows, and notes to the financial statements. ##### [205-954-45-2](https://asc.understandingaccounting.org/asc/205/954/#205-954-45-2) Pending content: no Source downloaded (UTC): 2026-09-09T22:55:41.687Z to 2026-09-09T22:55:41.687Z Record version: sha256:30aec240ff5a300d0689bf5ff9537bbddcc087aa0ccf4c511e9a25453b84049b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The terms _balance sheet_ and _statement of operations_ indicate the content and purpose of the respective statements and serve as possible titles for those statements. Other appropriately descriptive titles may also be used. For example, a statement reporting financial position could be called a statement of financial position as well as a balance sheet. Current practice and purpose suggest, however, that a statement of cash flows only be titled Statement of Cash Flows. ##### [205-954-45-3](https://asc.understandingaccounting.org/asc/205/954/#205-954-45-3) Pending content: no Source downloaded (UTC): 2026-09-09T22:55:41.687Z to 2026-09-09T22:55:41.687Z Record version: sha256:ef76113aebcdbcc9d275e1c444071037f7a2fa412e19d8c20b4cb85b2a4e1b0f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph not used](https://asc.understandingaccounting.org/updates/page-1833002/). ##### [205-954-45-4](https://asc.understandingaccounting.org/asc/205/954/#205-954-45-4) Pending content: no Source downloaded (UTC): 2026-09-09T22:55:41.687Z to 2026-09-09T22:55:41.687Z Record version: sha256:71f88c7de01496bfde53c30051527542e00ab53c94181f546725c20b9fcec435 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph not used](https://asc.understandingaccounting.org/updates/page-1833002/). ##### [205-954-45-5](https://asc.understandingaccounting.org/asc/205/954/#205-954-45-5) Pending content: no Source downloaded (UTC): 2026-09-09T22:55:41.687Z to 2026-09-09T22:55:41.687Z Record version: sha256:89e8515d77882170f1213e92f826568da9bd604c21eee934e31bf695f55ee8db Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph not used](https://asc.understandingaccounting.org/updates/page-1833002/). ##### [205-954-45-6](https://asc.understandingaccounting.org/asc/205/954/#205-954-45-6) Pending content: no Source downloaded (UTC): 2026-09-09T22:55:41.687Z to 2026-09-09T22:55:41.687Z Record version: sha256:2fdab9500885dba4338cf3002b9d32e06d3774ab9e30189824f86730dc1c886c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph not used](https://asc.understandingaccounting.org/updates/page-1833002/). ##### [205-954-45-7](https://asc.understandingaccounting.org/asc/205/954/#205-954-45-7) Pending content: no Source downloaded (UTC): 2026-09-09T22:55:41.687Z to 2026-09-09T22:55:41.687Z Record version: sha256:c4935c99a1dd4ad82d23733a2a1b129d77a1ec7b1084ee4e0680f0820bfdc909 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph not used](https://asc.understandingaccounting.org/updates/page-1833002/). ##### [205-954-45-8](https://asc.understandingaccounting.org/asc/205/954/#205-954-45-8) Pending content: no Source downloaded (UTC): 2026-09-09T22:55:41.687Z to 2026-09-09T22:55:41.687Z Record version: sha256:ca0df80646b643884aad19180bfb95b3f9cc7b7bda6564c775ce7501e7829b82 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-14](https://asc.understandingaccounting.org/updates/asu-2016-14/). ##### [205-954-45-9](https://asc.understandingaccounting.org/asc/205/954/#205-954-45-9) Pending content: no Source downloaded (UTC): 2026-09-09T22:55:41.687Z to 2026-09-09T22:55:41.687Z Record version: sha256:f9da6f4a9e3333b11380e362cc1435e1158eac3adb2f46271e8a19918773454d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-14](https://asc.understandingaccounting.org/updates/asu-2016-14/). Source downloaded (UTC): 2026-09-09T22:55:43.454Z to 2026-09-09T22:55:43.454Z Record version: sha256:b1ea1f9d10f5bc2b8023e8784a0a9d028b9dcc5ea11dac14b2810c915ffd07ba Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 205-954-50: 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/205/954/#50-disclosure) SEC content: no ##### [205-954-50-1](https://asc.understandingaccounting.org/asc/205/954/#205-954-50-1) Pending content: no Source downloaded (UTC): 2026-09-09T22:55:43.454Z to 2026-09-09T22:55:43.454Z Record version: sha256:eed17db1000603b3ec0e26c412de80d4d5d2d7460b06772ee72e5163200c22d4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Section not used](https://asc.understandingaccounting.org/updates/page-1833002/).