{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/220/954/#45-other-presentation-matters","source":"FASB Accounting Standards Codification, Basic View","usage":"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.","topic":"220","topic_title":"Income Statement—Reporting Comprehensive Income","subtopic":"220-954","subtopic_title":"Health Care Entities","section":{"number":"45","label":"45 Other Presentation Matters","anchor":"45-other-presentation-matters","is_sec":false,"groups":[{"block":null,"heading":"Statement of Activities","paragraphs":[{"citation":"220-954-45-1","para":"45-1","html":"
For not-for-profit, business-oriented health care entities, the statement of operations may be combined with the statement of changes in equity (net assets).
","snippet":"For not-for-profit, business-oriented health care entities, the statement of operations may be combined with the statement of changes in equity (net assets).","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:2bdf6b9ceebaedb8414174a1c2ab6e5ad34800edec1bea5c651ffc0b09e374d2","downloaded_from":"2026-09-09T23:07:04.774Z","last_downloaded_at":"2026-09-09T23:07:04.774Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477925","source_sha256":"d29134eab106bb5c96bb6ef715250823c8be595ceb1f3f3e57066f8c8ed69a2d"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:edc53a31db3f32cd823f20f7d2db3266c4a1f0c7fa191c3bd5943b322f8a9d40","downloaded_from":"2026-09-09T23:07:04.774Z","last_downloaded_at":"2026-09-09T23:07:04.774Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477925","source_sha256":"d29134eab106bb5c96bb6ef715250823c8be595ceb1f3f3e57066f8c8ed69a2d"}},{"block":null,"heading":"Equity Transfers","paragraphs":[{"citation":"220-954-45-2","para":"45-2","html":"
Equity transfers are reported separately as changes in net assets, are excluded from the performance indicator, and do not result in any step-up in basis of the underlying assets transferred. Paragraph 958-720-30-3 provides guidance on services received from personnel of an affiliate that directly benefits the recipient not-for-profit, business-oriented health care entity and for which the affiliate does not charge the recipient entity. Paragraph 958-20-55-2B describes the difference between an equity transfer and an equity transaction.
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The increase in net assets associated with services received from personnel of an affiliate that directly benefit the recipient not-for-profit, business-oriented health care entity and for which the affiliate does not charge the recipient entity shall be reported as an equity transfer, regardless of whether those services are received from personnel of a not-for-profit affiliate or any other affiliate. The corresponding decrease in net assets or the creation or enhancement of an asset resulting from the use of services received from personnel of an affiliate shall be reported similar to how other such expenses or assets are reported.
","snippet":"The increase in net assets associated with services received from personnel of an affiliate that directly benefit the recipient not-for-profit, business-oriented health care entity and for which the affiliate does not ch…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:fc7e1bbea023cbb1155b711fc39a3205a4a1bdfcc6ca80202e1101dc152a0221","downloaded_from":"2026-09-09T23:07:04.774Z","last_downloaded_at":"2026-09-09T23:07:04.774Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477925","source_sha256":"d29134eab106bb5c96bb6ef715250823c8be595ceb1f3f3e57066f8c8ed69a2d"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b2fcf91f021e4b54339561e084cade56ad4c89de7f6c11eec18d1b66a0757f6a","downloaded_from":"2026-09-09T23:07:04.774Z","last_downloaded_at":"2026-09-09T23:07:04.774Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477925","source_sha256":"d29134eab106bb5c96bb6ef715250823c8be595ceb1f3f3e57066f8c8ed69a2d"}},{"block":null,"heading":"Functional Allocations","paragraphs":[{"citation":"220-954-45-4","para":"45-4","html":"
Functional expense classification is a method of grouping expenses according to the purpose for which costs are incurred. The primary functional expense classifications are program services and supporting activities. The extent of classification and subclassification of expenses depends on many factors, such as the nature and complexity of the health care entity. For example, in complying with the requirements of paragraphs 958-205-45-6, 958-720-05-4, and 958-720-45-2, some not-for-profit health care entities may present only two categories: health services (including inpatient services, outpatient procedures, home health services, and so forth) and general and administrative. Others may present additional distinctions such as physician services, research, and teaching. Functional allocations shall be based on full cost allocations.
","snippet":"Functional expense classification is a method of grouping expenses according to the purpose for which costs are incurred. The primary functional expense classifications are program services and supporting activities. The…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ed2f3bdc62a40c0e75ef0478d9e3fe71b91c7947f3c64d003774a07ab0436e4d","downloaded_from":"2026-09-09T23:07:04.774Z","last_downloaded_at":"2026-09-09T23:07:04.774Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477925","source_sha256":"d29134eab106bb5c96bb6ef715250823c8be595ceb1f3f3e57066f8c8ed69a2d"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:3e6c2fe6af5a34b6f8d6c40c7d6d65f8c105ae331fe07efd4ecbe9271d144691","downloaded_from":"2026-09-09T23:07:04.774Z","last_downloaded_at":"2026-09-09T23:07:04.774Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477925","source_sha256":"d29134eab106bb5c96bb6ef715250823c8be595ceb1f3f3e57066f8c8ed69a2d"}},{"block":null,"heading":"Performance Indicator and Intermediate Operating Measures","paragraphs":[{"citation":"220-954-45-5","para":"45-5","html":"
The statement of operations for not-for-profit, business-oriented health care entities shall include a performance indicator. Because of the importance of the performance indicator, it shall be clearly labeled with a descriptive term such as revenues over expenses, revenues and gains over expenses and losses, recognized income, or performance earnings. Not-for-profit, business-oriented health care entities shall report the performance indicator in a statement that also presents the total changes in net assets without donor restrictions. Other changes in net assets may be presented separately or in the same statement.
","snippet":"The statement of operations for not-for-profit, business-oriented health care entities shall include a performance indicator. Because of the importance of the performance indicator, it shall be clearly labeled with a des…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:9aa82b1bc329bb7904a424fa4969392c23366055bed5716510ba60853a9c72a6","downloaded_from":"2026-09-09T23:07:04.774Z","last_downloaded_at":"2026-09-09T23:07:04.774Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477925","source_sha256":"d29134eab106bb5c96bb6ef715250823c8be595ceb1f3f3e57066f8c8ed69a2d"}},{"citation":"220-954-45-6","para":"45-6","html":"
Classifying revenues, expenses, gains, and losses within classes of net assets does not preclude incorporating additional classifications within the performance indicator. For example, within a class or classes of changes in net assets, an NFP may classify items as operating and nonoperating, expendable and nonexpendable, recognized and unrecognized, recurring and nonrecurring, or in other ways.
Transition date:(P) December 16, 2026; (N) December 16, 2026Transition guidance:
105-10-65-10Classifying revenues, expenses, gains, and losses within classes of net assets does not preclude incorporating additional classifications within the performance indicator. For example, within a class or classes of changes in net assets, an NFP may classify items as operating and nonoperating, expendable and nonexpendable, recurring and nonrecurring, or in other ways.
","snippet":"Classifying revenues, expenses, gains, and losses within classes of net assets does not preclude incorporating additional classifications within the performance indicator. For example, within a class or classes of change…","pending":true,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ce9b64b2140c0127c312e7175df2bae6afc6bc7f68f48a5f85ae364cd0369c44","downloaded_from":"2026-09-09T23:07:04.774Z","last_downloaded_at":"2026-09-09T23:07:04.774Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477925","source_sha256":"d29134eab106bb5c96bb6ef715250823c8be595ceb1f3f3e57066f8c8ed69a2d"}},{"citation":"220-954-45-7","para":"45-7","html":"
This guidance neither requires nor precludes reporting such intermediate measures or subtotals. Guidance on the use of an intermediate measure of operations is discussed in paragraphs
958-220-45-11 through 45-12
.
","snippet":"This guidance neither requires nor precludes reporting such intermediate measures or subtotals. Guidance on the use of an intermediate measure of operations is discussed in paragraphs 958-220-45-11 through 45-12.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:178faab9188d37d6d01587edf23cebd92b0dd055e86de9a001dff550189d7633","downloaded_from":"2026-09-09T23:07:04.774Z","last_downloaded_at":"2026-09-09T23:07:04.774Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477925","source_sha256":"d29134eab106bb5c96bb6ef715250823c8be595ceb1f3f3e57066f8c8ed69a2d"}},{"citation":"220-954-45-8","para":"45-8","html":"
Health care entities shall report the following items separately from the performance indicator:
  1. a
    Transactions with owners acting in that capacity.
  2. b
    Equity transfers involving other entities that control the reporting entity, are controlled by the reporting entity, or are under common control with the reporting entity.
  3. c
    Receipt of donor-restricted contributions.
  4. d
    Contributions of, and assets released from donor restrictions related to, long-lived assets.
  5. e
    Items that are required to be reported in or reclassified from other comprehensive income in accordance with paragraph 220-10-45-10A, which includes, but is not limited to, gains or losses, prior service costs or credits, and transition assets or obligations recognized in accordance with Topic 715; foreign currency translation adjustments; the portion of the gain or loss on derivative instruments designated and qualifying as cash flow hedging instruments included in the assessment of effectiveness, and for all qualifying hedging relationships amounts excluded from the assessment of effectiveness and recognized in earnings through an amortization approach in accordance with paragraph 815-20-25-83A.
  6. f
    Items that are required to be reported separately under specialized not-for-profit standards.
  7. g
    Unrealized gains and losses on investments on other than trading debt securities, in accordance with paragraph 954-220-45-9.
  8. h
    Investment returns restricted by donors or by law.
  9. i
    Subparagraph superseded by Accounting Standards Update No. 2016-14.
  10. j
    Subparagraph superseded by Accounting Standards Update No. 2016-14.
  11. k
    An inherent contribution (see paragraph 958-805-25-31) that increases net assets with donor restrictions, as described in paragraph 954-805-45-2.
  12. l
    The portion of the total change in the fair value of the liability resulting from a change in the instrument-specific credit risk, in accordance with paragraph 825-10-45-5.
","snippet":"Health care entities shall report the following items separately from the performance indicator:\n(a) Transactions with owners acting in that capacity.\n(b) Equity transfers involving other entities that control the report…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:5572b90e4a2f4439e69089f3fc56ce9e906c4d54c5f4727675b40829913b3abb","downloaded_from":"2026-09-09T23:07:04.774Z","last_downloaded_at":"2026-09-09T23:07:04.774Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477925","source_sha256":"d29134eab106bb5c96bb6ef715250823c8be595ceb1f3f3e57066f8c8ed69a2d"}},{"citation":"220-954-45-9","para":"45-9","html":"
Investment return (including realized and unrealized gains and losses) not restricted by donors or by law shall be classified as changes in net assets without donor restrictions as follows:
  1. a
    Included in the performance indicator are:
    1. 1
      Dividend, interest, and other similar investment income
    2. 2
      Realized gains and losses
    3. 3
      Unrealized gains and losses on trading debt securities (trading securities are defined in Topic 320)
    4. 4
      Credit loss expense (see Topic 326)
    5. 5
      Unrealized gains and losses and impairments on equity investments accounted for under Topic 321.
  2. b
    Excluded from the performance indicator are unrealized gains and losses on debt securities, unless the debt security is a trading debt security.
","snippet":"Investment return (including realized and unrealized gains and losses) not restricted by donors or by law shall be classified as changes in net assets without donor restrictions as follows:\n(a) Included in the performanc…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e55658f9da1a9bb33220b12ec2dcddeef7cecea975191918155ef169ffe009dc","downloaded_from":"2026-09-09T23:07:04.774Z","last_downloaded_at":"2026-09-09T23:07:04.774Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477925","source_sha256":"d29134eab106bb5c96bb6ef715250823c8be595ceb1f3f3e57066f8c8ed69a2d"}},{"citation":"220-954-45-10","para":"45-10","html":"
If gains and investment income that are limited to specific uses by donor-imposed restrictions are reported as increases in net assets without donor restrictions in accordance with paragraph 958-220-45-6, classification of those gains and investment income should be consistent with the previous paragraph.
","snippet":"If gains and investment income that are limited to specific uses by donor-imposed restrictions are reported as increases in net assets without donor restrictions in accordance with paragraph 958-220-45-6, classification …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e4afbec947d4fe95be258c6fc6e810df331b34eee10cd4c125f17b89fc849d27","downloaded_from":"2026-09-09T23:07:04.774Z","last_downloaded_at":"2026-09-09T23:07:04.774Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477925","source_sha256":"d29134eab106bb5c96bb6ef715250823c8be595ceb1f3f3e57066f8c8ed69a2d"}},{"citation":"220-954-45-11","para":"45-11","html":"
See paragraphs
958-220-45-23 through 45-24
for additional guidance on reporting investment gains, losses, and income.
","snippet":"See paragraphs 958-220-45-23 through 45-24 for additional guidance on reporting investment gains, losses, and income.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:1fb1b396e204af19035d41d9c20490f600bdc9da4b32007aaf3166a86b26f1da","downloaded_from":"2026-09-09T23:07:04.774Z","last_downloaded_at":"2026-09-09T23:07:04.774Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477925","source_sha256":"d29134eab106bb5c96bb6ef715250823c8be595ceb1f3f3e57066f8c8ed69a2d"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c4866b57db055fe595436051f6910bedc08f290226e98f6ff245e8173c0e63b3","downloaded_from":"2026-09-09T23:07:04.774Z","last_downloaded_at":"2026-09-09T23:07:04.774Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477925","source_sha256":"d29134eab106bb5c96bb6ef715250823c8be595ceb1f3f3e57066f8c8ed69a2d"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:6ce29bf76252e802c867abb99f44d85fb0d3f8ec4523cf6efde3d94e1fd3b30c","downloaded_from":"2026-09-09T23:07:04.774Z","last_downloaded_at":"2026-09-09T23:07:04.774Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477925","source_sha256":"d29134eab106bb5c96bb6ef715250823c8be595ceb1f3f3e57066f8c8ed69a2d"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:6ce29bf76252e802c867abb99f44d85fb0d3f8ec4523cf6efde3d94e1fd3b30c","downloaded_from":"2026-09-09T23:07:04.774Z","last_downloaded_at":"2026-09-09T23:07:04.774Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477925","source_sha256":"d29134eab106bb5c96bb6ef715250823c8be595ceb1f3f3e57066f8c8ed69a2d"}}