# ASC 210-954: Balance Sheet — Health Care Entities Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/210/954/) 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): 2026-09-09T23:02:01.873Z to 2026-09-09T23:02:21.878Z Record version: sha256:685e972969b65f88ef59c1bbdb2503c68eae33c766f0800881fbc70c2d980ed2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 210-954: Balance Sheet — Health Care Entities ### Machine-generated study aids ```json { "summary": "This subtopic governs how health care entities, including not-for-profit business-oriented health care entities, present their balance sheets. The general rule is a classified (current/noncurrent) balance sheet under Section 210-10-45, except that a continuing care retirement community may instead sequence assets by nearness of conversion to cash and liabilities by nearness of maturity. It also specifies that contractually limited (non-donor) assets stay in net assets without donor restrictions, that interfund balances are eliminated, and that restricted or segregated cash is excluded from current assets.", "key_points": [ "Health care entities shall classify assets and liabilities as current and noncurrent per Section 210-10-45, but a continuing care retirement community may instead sequence assets by nearness of conversion to cash and liabilities by nearness of maturity (210-954-45-1).", "Assets whose use is contractually limited by an outside party other than a donor or grantor—such as trusteed bond proceeds, self-insurance funding arrangements, and statutory reserves—are included in net assets without donor restrictions (210-954-45-2).", "Because general-purpose financial statements do not classify assets and liabilities into fund groups, interfund receivables and payables are eliminated (210-954-45-3).", "Internally designated funds shall be reported separately from externally restricted funds, either on the face of the balance sheet or in the notes (210-954-45-4).", "Cash and claims to cash restricted as to withdrawal or use for other than current operations, designated for acquiring or constructing noncurrent assets, segregated to liquidate long-term debt, or limited to long-term purposes by donor restriction shall be reported separately and excluded from current assets (210-954-45-5).", "Separate bank accounts holding donor-restricted gifts are not reported on a separate line unless 954-210-45-5 requires it, because donor restrictions limit use of net assets rather than specific assets; a columnar presentation of the two net asset classes is permitted if entity-wide totals are shown (210-954-45-6).", "If the form of internally designated assets reported separately is not evident from the balance sheet description, that form shall be disclosed in the notes (210-954-50-2)." ], "categories": [ "Presentation", "Not-for-profit", "Industry-specific", "Financial statement presentation" ], "audience_level": "intermediate", "student_note": "The classic trap is assuming that anything labeled \"limited as to use\" is donor-restricted: contractual limits imposed by trustees, lenders, or regulators leave the assets in net assets without donor restrictions, even though they are excluded from current assets. Also remember the CCRC exception to the classified balance sheet requirement.", "related_topics": [ "954-10", "954-210", "954-810", "210-10", "958-210", "954-430" ], "key_concepts": [ "classified balance sheet", "continuing care retirement community", "assets limited as to use", "net assets without donor restrictions", "donor-imposed restrictions", "restricted cash", "interfund receivables and payables", "internally designated funds" ] } ``` Source downloaded (UTC): 2026-09-09T23:02:01.873Z to 2026-09-09T23:02:01.873Z Record version: sha256:c1d16517bf0b3c3ecb25216d4496cac24e4a09b52a8b2f924794d039e9b42983 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 210-954-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/210/954/#00-status) SEC content: no ##### [210-954-00-1](https://asc.understandingaccounting.org/asc/210/954/#210-954-00-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:02:01.873Z to 2026-09-09T23:02:01.873Z Record version: sha256:c9a2b0ad908ae63b807f9a821367aee84fcfff43225ab50f0df779920be42bf6 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
Donor-Imposed RestrictionAddedAccounting Standards Update No. 2016-1408/18/2016
Net Assets without Donor RestrictionsAddedAccounting Standards Update No. 2016-1408/18/2016
Unrestricted Net AssetsSupersededAccounting Standards Update No. 2016-1408/18/2016
954-210-45-2AmendedAccounting Standards Update No. 2016-1408/18/2016
954-210-45-4AmendedAccounting Standards Update No. 2016-1408/18/2016
954-210-45-5 through 45-7
AddedMaintenance Update 2017-21 (PDF)12/22/2017
954-210-50-1SupersededAccounting Standards Update No. 2016-1408/18/2016
954-210-50-2AmendedMaintenance Update 2021-09 (PDF)08/20/2021
954-210-50-2AmendedAccounting Standards Update No. 2016-1408/18/2016
Source downloaded (UTC): 2026-09-09T23:02:05.802Z to 2026-09-09T23:02:05.802Z Record version: sha256:6748f15b59467bf721ae552bfe7e2cf4f9db5fb5f8ee5cb8344e474cc3a0b00b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 210-954-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/210/954/#05-overview-and-background) SEC content: no ##### [210-954-05-1](https://asc.understandingaccounting.org/asc/210/954/#210-954-05-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:02:05.802Z to 2026-09-09T23:02:05.802Z Record version: sha256:a4929eaa085ca5c1c3d5e411f51b64efba9cd609c7bcf320b95c3f6401ad72b4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic provides guidance on balance sheets for health care entities. Source downloaded (UTC): 2026-09-09T23:02:08.568Z to 2026-09-09T23:02:08.568Z Record version: sha256:59b3681455cac3dc60dcfabfd1f92bb59180595fdf143214f6e41f036612c32b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 210-954-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/210/954/#15-scope-and-scope-exceptions) SEC content: no #### Overall Guidance ##### [210-954-15-1](https://asc.understandingaccounting.org/asc/210/954/#210-954-15-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:02:08.568Z to 2026-09-09T23:02:08.568Z Record version: sha256:c74f26d409af4aea07e73881544b14b54b22aaa3807c4a70465d7ced09a3d2c2 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 (Section 954-10-15). ##### [210-954-15-2](https://asc.understandingaccounting.org/asc/210/954/#210-954-15-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:02:08.568Z to 2026-09-09T23:02:08.568Z Record version: sha256:db3cf1bf8a6cc3fd9bda0e4469a0767eaf540cc74af1dad3ffceec7390622361 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): 2026-09-09T23:02:14.336Z to 2026-09-09T23:02:14.336Z Record version: sha256:78d301f446a555560af68dabd6b7fb3e3e9eca93204db733f087825617ef70c6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 210-954-45: 45 Other Presentation Matters [Read section](https://asc.understandingaccounting.org/asc/210/954/#45-other-presentation-matters) SEC content: no ##### [210-954-45-1](https://asc.understandingaccounting.org/asc/210/954/#210-954-45-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:02:14.336Z to 2026-09-09T23:02:14.336Z Record version: sha256:3308fbc97fea0a107de104ecdb40379011613ca9990d38e3a177c89f7579a81c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Health care entities, including not-for-profit, business-oriented health care entities, shall classify assets and liabilities as current and noncurrent as discussed in Section 210-10-45. However, rather than presenting a classified balance sheet, a continuing care retirement community instead may sequence assets according to their nearness of conversion to cash and may sequence liabilities according to the nearness of the maturity and resulting use of cash. #### Net Assets without Donor Restrictions ##### [210-954-45-2](https://asc.understandingaccounting.org/asc/210/954/#210-954-45-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:02:14.336Z to 2026-09-09T23:02:14.336Z Record version: sha256:3876ae2c9d7d5c9ca85154310deda8d5245a0611b75929974c9e7a4ecfd3f488 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Net assets without donor restrictions](https://asc.understandingaccounting.org/glossary/n/#net-assets-without-donor-restrictions "The part of net assets of a not-for-profit entity that is not subject to donor-imposed restrictions (donors include other types of contributors, including makers of certain grants).") of not-for-profit, business-oriented health care entities include assets whose use is contractually limited, such as the following: 1. a Proceeds of debt issues and funds of the not-for-profit, business-oriented health care entity deposited with a trustee and limited to use in accordance with the requirements of an indenture or a similar agreement. 2. b Other assets limited to use for identified purposes through an agreement between the not-for-profit, business-oriented health care entity and an outside party other than a donor or grantor. Examples include assets set aside under debt agreements, assets set aside under self-insurance (risk-retention) funding arrangements, and assets set aside to meet statutory reserve requirements (such as those required under state laws and regulations for many [health maintenance organizations](https://asc.understandingaccounting.org/glossary/h/#health-maintenance-organization "A generic group of medical care entities organized to provide defined health care services to members in return for fixed, periodic premiums (usually paid monthly) that are paid in advance.")). (See paragraph [954-810-45-4](https://asc.understandingaccounting.org/asc/810/954/#810-954-45-4).) #### Interfund Receivables or Payables ##### [210-954-45-3](https://asc.understandingaccounting.org/asc/210/954/#210-954-45-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:02:14.336Z to 2026-09-09T23:02:14.336Z Record version: sha256:1ee031d115452bd2c00a25caf65afe7873c1bc6a80520e22a71659c4e99b4db0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Interfund receivables (or payables) may exist in internal records. However, since general-purpose financial statements of not-for-profit, business-oriented health care entities do not classify assets and liabilities into fund groups, interfund receivables (or payables) are eliminated. #### Assets Limited as to Use ##### [210-954-45-4](https://asc.understandingaccounting.org/asc/210/954/#210-954-45-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:02:14.336Z to 2026-09-09T23:02:14.336Z Record version: sha256:dc1a0bebd3163e6a1c9bd6f1907ca6ca7a8bbe8460b24f47ebfb3569d9436ded Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Internally designated funds shall be reported separately from externally restricted funds either on the face of the balance sheet or in the notes to the financial statements. #### Cash and Cash Equivalents ##### [210-954-45-5](https://asc.understandingaccounting.org/asc/210/954/#210-954-45-5) Pending content: no Source downloaded (UTC): 2026-09-09T23:02:14.336Z to 2026-09-09T23:02:14.336Z Record version: sha256:f8393832c427ed14c7231363c9aa63d33714e37bf68d86eb848df7d330e8f360 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Cash and claims to cash that meet any of the following conditions shall be reported separately and shall be excluded from current assets: 1. a They are restricted as to withdrawal or use for other than current operations. 2. b They are designated for expenditure in the acquisition or construction of noncurrent assets. 3. c They are required to be segregated for the liquidation of long-term debts. 4. d They are limited to use for long-term purposes by a [donor-imposed restriction](https://asc.understandingaccounting.org/glossary/d/#donor-imposed-restriction "A donor stipulation (donors include other types of contributors, including makers of certain grants) that specifies a use for a contributed asset that is more specific than broad limits resulting from the following: The nature of the not-for-profit entity (NFP) The environment in which it operates The purposes specified in its articles of incorporation or bylaws or comparable documents for an unincorporated association. Some donors impose restrictions that are temporary in nature, for example, stipulating that resources be used after a specified date, for particular programs or services, or to acquire buildings or equipment. Other donors impose restrictions that are perpetual in nature, for example, stipulating that resources be maintained in perpetuity. Laws may extend those limits to investment returns from those resources and to other enhancements (diminishments) of those resources. Thus, those laws extend donor-imposed restrictions."). ##### [210-954-45-6](https://asc.understandingaccounting.org/asc/210/954/#210-954-45-6) Pending content: no Source downloaded (UTC): 2026-09-09T23:02:14.336Z to 2026-09-09T23:02:14.336Z Record version: sha256:ec31aee715553edc3f5619bb9d25a5e7142a48a44b72f1ab0ea39bee966cf24b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For fiduciary purposes, separate checking or savings accounts may be maintained for donations with donor restrictions. However, unless required by paragraph [954-210-45-5](https://asc.understandingaccounting.org/asc/210/954/#210-954-45-5), such accounts are not reported on a line separate from other cash and cash equivalents because donor restrictions generally relate to limitations on the use of net assets rather than on the use of specific assets. A columnar presentation that highlights the two classes of net assets (that is, without donor restrictions and with donor restrictions) is not precluded if the totals for the reporting entity as a whole are displayed. ##### [210-954-45-7](https://asc.understandingaccounting.org/asc/210/954/#210-954-45-7) Pending content: no Source downloaded (UTC): 2026-09-09T23:02:14.336Z to 2026-09-09T23:02:14.336Z Record version: sha256:3a781f90030f02f4d129933c6911c1653d7afb403903f87ed0d80c9f5f6d3678 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): 2026-09-09T23:02:18.022Z to 2026-09-09T23:02:18.022Z Record version: sha256:8be596f9ffb4a3f28fa2114672ca5d637dd3145b8be545515d2e88c0c68213c7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 210-954-50: 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/210/954/#50-disclosure) SEC content: no ##### [210-954-50-1](https://asc.understandingaccounting.org/asc/210/954/#210-954-50-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:02:18.022Z to 2026-09-09T23:02:18.022Z Record version: sha256:4a5fd06374281107806419fea88e175b5cb2cb035f14639c91167e3308a4a574 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/). #### Assets Limited as to Use ##### [210-954-50-2](https://asc.understandingaccounting.org/asc/210/954/#210-954-50-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:02:18.022Z to 2026-09-09T23:02:18.022Z Record version: sha256:fbe8d61fe3c2d6d13c6d3d12161ddc605981947d35f7152401c423a74491d77e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. When internally designated funds are reported separately from externally restricted funds in accordance with paragraph [954-210-45-4](https://asc.understandingaccounting.org/asc/210/954/#210-954-45-4), if the form of the assets is not evident from the description on the balance sheet, the form of the assets shall be disclosed in the notes to the financial statements.