# ASC 220-954-45: Income Statement—Reporting Comprehensive Income — Health Care Entities — 45 Other Presentation Matters Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/220/954/#45-other-presentation-matters) 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): 2026-09-09T23:07:04.774Z to 2026-09-09T23:07:04.774Z Record version: sha256:6ce29bf76252e802c867abb99f44d85fb0d3f8ec4523cf6efde3d94e1fd3b30c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 220-954-45: 45 Other Presentation Matters [Read section](https://asc.understandingaccounting.org/asc/220/954/#45-other-presentation-matters) SEC content: no #### Statement of Activities ##### [220-954-45-1](https://asc.understandingaccounting.org/asc/220/954/#220-954-45-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:07:04.774Z to 2026-09-09T23:07:04.774Z Record version: sha256:2bdf6b9ceebaedb8414174a1c2ab6e5ad34800edec1bea5c651ffc0b09e374d2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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). #### Equity Transfers ##### [220-954-45-2](https://asc.understandingaccounting.org/asc/220/954/#220-954-45-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:07:04.774Z to 2026-09-09T23:07:04.774Z Record version: sha256:0e082ac510cbba35fbf2289f3c7e712813bfe7a1ebfd62969e0e64216ac90633 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Equity transfers](https://asc.understandingaccounting.org/glossary/e/#equity-transfer "An equity transfer is nonreciprocal. An equity transfer is a transaction directly between a transferor and a transferee. Equity transfers are similar to ownership transactions between a for-profit parent and its owned subsidiary (for example, additional paid-in capital or dividends). However, equity transfers can occur only between related not-for-profit entities (NFPs) if one controls the other or both are under common control. An equity transfer embodies no expectation of repayment, nor does the transferor receive anything of immediate economic value (such as a financial interest or ownership).") are reported separately as changes in net assets, are excluded from the [performance indicator](https://asc.understandingaccounting.org/glossary/p/#performance-indicator "A performance indicator reports results of operations. A performance indicator and the income from continuing operations reported by for-profit health care entities generally are consistent, except for transactions that clearly are not applicable to one kind of entity (for example, for-profit health care entities typically would not receive contributions, and not-for-profit health care entities would not award stock compensation). That is, a performance indicator is analogous to income from continuing operations of a for-profit entity."), and do not result in any step-up in basis of the underlying assets transferred. Paragraph [958-720-30-3](https://asc.understandingaccounting.org/asc/720/958/#720-958-30-3) provides guidance on services received from personnel of an [affiliate](https://asc.understandingaccounting.org/glossary/a/#affiliate "A party that, directly or indirectly through one or more intermediaries, controls, is controlled by, or is under common control with an entity. See Control.") 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](https://asc.understandingaccounting.org/asc/958/20/#958-20-55-2B) describes the difference between an equity transfer and an equity transaction. ##### [220-954-45-3](https://asc.understandingaccounting.org/asc/220/954/#220-954-45-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:07:04.774Z to 2026-09-09T23:07:04.774Z Record version: sha256:fc7e1bbea023cbb1155b711fc39a3205a4a1bdfcc6ca80202e1101dc152a0221 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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. #### Functional Allocations ##### [220-954-45-4](https://asc.understandingaccounting.org/asc/220/954/#220-954-45-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:07:04.774Z to 2026-09-09T23:07:04.774Z Record version: sha256:ed2f3bdc62a40c0e75ef0478d9e3fe71b91c7947f3c64d003774a07ab0436e4d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Functional expense classification](https://asc.understandingaccounting.org/glossary/f/#functional-expense-classification "A method of grouping expenses according to the purpose for which costs are incurred. The primary functional classifications of a not-for-profit entity are program services and supporting activities.") 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](https://asc.understandingaccounting.org/asc/205/958/#205-958-45-6), [958-720-05-4](https://asc.understandingaccounting.org/asc/720/958/#720-958-05-4), and [958-720-45-2](https://asc.understandingaccounting.org/asc/720/958/#720-958-45-2), 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. #### Performance Indicator and Intermediate Operating Measures ##### [220-954-45-5](https://asc.understandingaccounting.org/asc/220/954/#220-954-45-5) Pending content: no Source downloaded (UTC): 2026-09-09T23:07:04.774Z to 2026-09-09T23:07:04.774Z Record version: sha256:9aa82b1bc329bb7904a424fa4969392c23366055bed5716510ba60853a9c72a6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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](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)."). Other changes in net assets may be presented separately or in the same statement. ##### [220-954-45-6](https://asc.understandingaccounting.org/asc/220/954/#220-954-45-6) Pending content: yes Source downloaded (UTC): 2026-09-09T23:07:04.774Z to 2026-09-09T23:07:04.774Z Record version: sha256:ce9b64b2140c0127c312e7175df2bae6afc6bc7f68f48a5f85ae364cd0369c44 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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: [105-10-65-10](https://asc.understandingaccounting.org/asc/105/10/#105-10-65-10)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, recurring and nonrecurring, or in other ways. ##### [220-954-45-7](https://asc.understandingaccounting.org/asc/220/954/#220-954-45-7) Pending content: no Source downloaded (UTC): 2026-09-09T23:07:04.774Z to 2026-09-09T23:07:04.774Z Record version: sha256:178faab9188d37d6d01587edf23cebd92b0dd055e86de9a001dff550189d7633 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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](https://asc.understandingaccounting.org/asc/220/958/#220-958-45-11) . ##### [220-954-45-8](https://asc.understandingaccounting.org/asc/220/954/#220-954-45-8) Pending content: no Source downloaded (UTC): 2026-09-09T23:07:04.774Z to 2026-09-09T23:07:04.774Z Record version: sha256:5572b90e4a2f4439e69089f3fc56ce9e906c4d54c5f4727675b40829913b3abb Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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](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."). 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](https://asc.understandingaccounting.org/asc/220/10/#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](https://asc.understandingaccounting.org/asc/815/20/#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](https://asc.understandingaccounting.org/asc/220/954/#220-954-45-9). 8. h Investment returns restricted by donors or by law. 9. i [Subparagraph superseded by Accounting Standards Update No. 2016-14](https://asc.understandingaccounting.org/updates/asu-2016-14/). 10. j [Subparagraph superseded by Accounting Standards Update No. 2016-14](https://asc.understandingaccounting.org/updates/asu-2016-14/). 11. k An [inherent contribution](https://asc.understandingaccounting.org/glossary/i/#inherent-contribution "A contribution that results if an entity voluntarily transfers assets (or net assets) or performs services for another entity in exchange for either no assets or for assets of substantially lower value and unstated rights or privileges of a commensurate value are not involved.") (see paragraph [958-805-25-31](https://asc.understandingaccounting.org/asc/805/958/#805-958-25-31)) that increases [net assets with donor restrictions](https://asc.understandingaccounting.org/glossary/n/#net-assets-with-donor-restrictions "The part of net assets of a not-for-profit entity that is subject to donor-imposed restrictions (donors include other types of contributors, including makers of certain grants)."), as described in paragraph [954-805-45-2](https://asc.understandingaccounting.org/asc/805/954/#805-954-45-2). 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](https://asc.understandingaccounting.org/asc/825/10/#825-10-45-5). ##### [220-954-45-9](https://asc.understandingaccounting.org/asc/220/954/#220-954-45-9) Pending content: no Source downloaded (UTC): 2026-09-09T23:07:04.774Z to 2026-09-09T23:07:04.774Z Record version: sha256:e55658f9da1a9bb33220b12ec2dcddeef7cecea975191918155ef169ffe009dc Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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. ##### [220-954-45-10](https://asc.understandingaccounting.org/asc/220/954/#220-954-45-10) Pending content: no Source downloaded (UTC): 2026-09-09T23:07:04.774Z to 2026-09-09T23:07:04.774Z Record version: sha256:e4afbec947d4fe95be258c6fc6e810df331b34eee10cd4c125f17b89fc849d27 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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](https://asc.understandingaccounting.org/asc/220/958/#220-958-45-6), classification of those gains and investment income should be consistent with the previous paragraph. ##### [220-954-45-11](https://asc.understandingaccounting.org/asc/220/954/#220-954-45-11) Pending content: no Source downloaded (UTC): 2026-09-09T23:07:04.774Z to 2026-09-09T23:07:04.774Z Record version: sha256:1fb1b396e204af19035d41d9c20490f600bdc9da4b32007aaf3166a86b26f1da Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraphs [958-220-45-23 through 45-24](https://asc.understandingaccounting.org/asc/220/958/#220-958-45-23) for additional guidance on reporting investment gains, losses, and income.