{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/220/954/#55-implementation-guidance-and-illustrations","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":"55","label":"55 Implementation Guidance and Illustrations","anchor":"55-implementation-guidance-and-illustrations","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"220-954-55-1","para":"55-1","html":"<div class=\"asc-body\"><div class=\"norm-text\"> <a href=\"/updates/asu-2016-14/\" class=\"xref\">Paragraph superseded by Accounting Standards Update No. 2016-14</a>.</div> </div>","snippet":"Paragraph superseded by Accounting Standards Update No. 2016-14.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:86b923240e365bcfaaa060e86d2ead54c8ffd8a9977fa882c10d96f7eab788da","downloaded_from":"2026-09-09T23:07:12.667Z","last_downloaded_at":"2026-09-09T23:07:12.667Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478166","source_sha256":"f4439efea699fff42187ea87bf7c18ff6b4ae6c9a1f29fa4fd764a1f6ac78a30"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:3524b3560e3632133b3b20be44e3dc46497cee526a50d82225304ae6581ebb43","downloaded_from":"2026-09-09T23:07:12.667Z","last_downloaded_at":"2026-09-09T23:07:12.667Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478166","source_sha256":"f4439efea699fff42187ea87bf7c18ff6b4ae6c9a1f29fa4fd764a1f6ac78a30"}},{"block":null,"heading":"Illustrations","paragraphs":[{"citation":"220-954-55-2","para":"55-2","html":"<div class=\"asc-body\"><div class=\"norm-text\"> <span class=\"sfragment\" id=\"sfr_215DBA53-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">This Example illustrates the accounting treatment and financial statement presentation for other-than-trading debt securities of a not-for-profit health care entity. </span></span> </div> </div>","snippet":"This Example illustrates the accounting treatment and financial statement presentation for other-than-trading debt securities of a not-for-profit health care entity.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:5115b3abe06fc9f29a5f5231a14c3b119b7647c8e9055d3fca3017ddfe22b37d","downloaded_from":"2026-09-09T23:07:12.667Z","last_downloaded_at":"2026-09-09T23:07:12.667Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478166","source_sha256":"f4439efea699fff42187ea87bf7c18ff6b4ae6c9a1f29fa4fd764a1f6ac78a30"}},{"citation":"220-954-55-3","para":"55-3","html":"<div class=\"asc-body\"><div class=\"norm-text\"> <span class=\"sfragment\" id=\"sfr_215DBBF5-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Other-than-trading debt securities are purchased in Year 1 at a cost of $100. At the end of Year 1, the fair value of the securities is $300. In Year 2, the securities are sold for $400. </span></span> </div> </div>","snippet":"Other-than-trading debt securities are purchased in Year 1 at a cost of $100. At the end of Year 1, the fair value of the securities is $300. In Year 2, the securities are sold for $400.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d24f5bdd667a6f677a20691a5620eb9be6531d9d3e688254db0dd59c26d97494","downloaded_from":"2026-09-09T23:07:12.667Z","last_downloaded_at":"2026-09-09T23:07:12.667Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478166","source_sha256":"f4439efea699fff42187ea87bf7c18ff6b4ae6c9a1f29fa4fd764a1f6ac78a30"}},{"citation":"220-954-55-4","para":"55-4","html":"<div class=\"asc-body\"><div class=\"norm-text\"> <span class=\"sfragment\" id=\"sfr_215DBD61-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The journal entries are as follows: </span></span> <ul class=\"ul simple\" id=\"SL114874884-224278__GUID-4ED2EB8B-6C81-49C8-BFFE-8B8B752006D5\"> <li class=\"li\" id=\"SL114874884-224278__SL114874891-224278\"> <div class=\"p\"> <span class=\"sfragment\" id=\"sfr_215DBEC8-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Entry at the end of Year 1 to adjust the recorded value of the securities to fair value. </span></span> </div> <ul class=\"ul simple\" id=\"SL114874884-224278__GUID-47583D8E-1F57-49CD-991F-CE847AAD78A5\"> <li class=\"li\" id=\"SL114874884-224278__SL114874892-224278\"> <div class=\"p\"> <div class=\"fig figure fignone\"> <img src=\"/asc-img/GUID-BE37986E-0C66-410A-8C31-AAB3E4894CF5-low.gif\" altsource=\"GUID-BE37986E-0C66-410A-8C31-AAB3E4894CF5-low.gif\" alt=\" \" loading=\"lazy\"> <span class=\"sfragment\" id=\"sfr_215DCF29-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\"></span></span> <div class=\"figcaption\">Investments $200 Change in net unrealized gains and losses on investments $200 </div></div> </div> </li> </ul> </li> <li class=\"li\" id=\"SL114874884-224278__SL114874893-224278\"> <div class=\"p\"> <span class=\"sfragment\" id=\"sfr_215DD243-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Entry at the end of Year 2 to record the sale of the securities. </span></span> </div> <ul class=\"ul simple\" id=\"SL114874884-224278__GUID-5676BD6C-3F82-4DA2-B3F6-218BF3CF7903\"> <li class=\"li\" id=\"SL114874884-224278__SL114874894-224278\"> <div class=\"p\"> <div class=\"fig figure fignone\"> <img src=\"/asc-img/GUID-A1FE0B16-8732-4DDC-9FB8-2079A6621034-low.gif\" altsource=\"GUID-A1FE0B16-8732-4DDC-9FB8-2079A6621034-low.gif\" alt=\" \" loading=\"lazy\"> <span class=\"sfragment\" id=\"sfr_215DD727-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\"></span></span> <div class=\"figcaption\">Cash $400 Realized gain $300 Investments 100 Change in net unrealized gains and losses on investments 200 Investments 200 </div></div> </div> </li> </ul> </li> </ul> </div> </div>","snippet":"The journal entries are as follows:\nEntry at the end of Year 1 to adjust the recorded value of the securities to fair value.\nEntry at the end of Year 2 to record the sale of the securities.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:17fffedb1e62af5f80a11b1e267b240f197760d1e3b94020de10d10191aec110","downloaded_from":"2026-09-09T23:07:12.667Z","last_downloaded_at":"2026-09-09T23:07:12.667Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478166","source_sha256":"f4439efea699fff42187ea87bf7c18ff6b4ae6c9a1f29fa4fd764a1f6ac78a30"}},{"citation":"220-954-55-5","para":"55-5","html":"<div class=\"asc-body\"><div class=\"norm-text\"> <span class=\"sfragment\" id=\"sfr_215DD8AB-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">As discussed in paragraph <a href=\"/asc/220/954/#220-954-45-9\" class=\"xref\">954-220-45-9</a>, unrealized gains and losses on debt securities (except for trading debt securities) are reported in the statement of operations outside of the <a href=\"/glossary/p/#performance-indicator\" class=\"term\" title=\"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.\"><span>performance indicator</span></a> and realized gains and losses are reported in the statement of operations within the performance indicator. </span></span> </div> </div>","snippet":"As discussed in paragraph 954-220-45-9, unrealized gains and losses on debt securities (except for trading debt securities) are reported in the statement of operations outside of the performance indicator and realized ga…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:6e5c76f8455d3cab5a69279f7ee52b70fccd55dc62bf75a8b4b91da1f51055f9","downloaded_from":"2026-09-09T23:07:12.667Z","last_downloaded_at":"2026-09-09T23:07:12.667Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478166","source_sha256":"f4439efea699fff42187ea87bf7c18ff6b4ae6c9a1f29fa4fd764a1f6ac78a30"}},{"citation":"220-954-55-6","para":"55-6","html":"<div class=\"asc-body\"><div class=\"norm-text\"> <span class=\"sfragment\" id=\"sfr_215DD9FC-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Two possible presentations of net investment return on the statement of operations of a not-for-profit health care entity that presents a performance indicator in accordance with the information and illustration in paragraphs <div class=\"xref-range displayInline\"><a href=\"/asc/220/954/#220-954-55-3\" class=\"xref\">954-220-55-3 through 55-5</a></div> are as follows.</span></span> <ul class=\"ul simple\" id=\"SL114874884-224278__GUID-518DD64F-9855-4BFD-95FD-EC7B1E54447F\"> <li class=\"li\" id=\"SL114874884-224278__SL114874901-224278\"> <div class=\"p\"> <div class=\"fig figure fignone\"> <img src=\"/asc-img/GUID-6CAF0465-D086-4A5D-B812-2F15E450C85E-low.gif\" altsource=\"GUID-6CAF0465-D086-4A5D-B812-2F15E450C85E-low.gif\" alt=\" \" loading=\"lazy\"> <span class=\"sfragment\" id=\"sfr_215DDF28-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\"></span></span> <div class=\"figcaption\">Format 1: Year 1 Presentation of Net Investment Return Revenue \" $ X,XXX \" Expenses XXX Excess of revenues over expenses XXX \"Investment return, net\" XXX Less: Unrealized gains (losses) on other than trading debt securities excluded from performance indicator (200) Performance indicator XXX Add: Unrealized gains (losses) on other than trading debt securities excluded from performance indicator 200 Change in net assets without donor restrictions $ XXX </div></div> </div> </li> <li class=\"li\" id=\"SL114874884-224278__SL114874902-224278\"> <div class=\"p\"> <div class=\"fig figure fignone\"> <img src=\"/asc-img/GUID-16721A69-F109-42F1-90BE-40F39536DE0B-low.gif\" altsource=\"GUID-16721A69-F109-42F1-90BE-40F39536DE0B-low.gif\" alt=\" \" loading=\"lazy\"> <span class=\"sfragment\" id=\"sfr_215DE8AD-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\"></span></span> <div class=\"figcaption\">Format 2: Year 1 Presentation of Net Investment Return Revenue \" $ X,XXX \" Expenses XXX Excess of revenues over expenses XXX \"Investment return, net, excluding unrealized gains (losses) on debt securities (other than trading)\" XXX Performance indicator XXX Unrealized gains (losses) on other than trading debt securities excluded from performance indicator 200 Change in net assets without donor restrictions $ XXX </div></div> </div> </li> </ul> </div> </div>","snippet":"Two possible presentations of net investment return on the statement of operations of a not-for-profit health care entity that presents a performance indicator in accordance with the information and illustration in parag…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:aa6bae89a7728323a36f6ecb1e58b2108edc438e99fd27865db8fe028ad455fd","downloaded_from":"2026-09-09T23:07:12.667Z","last_downloaded_at":"2026-09-09T23:07:12.667Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478166","source_sha256":"f4439efea699fff42187ea87bf7c18ff6b4ae6c9a1f29fa4fd764a1f6ac78a30"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:6718a2836389c5c96e252854c5411225ff8d0814e3ca40c39fccbdb5096b934e","downloaded_from":"2026-09-09T23:07:12.667Z","last_downloaded_at":"2026-09-09T23:07:12.667Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not 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