# ASC 220-954-55: Income Statement—Reporting Comprehensive Income — Health Care Entities — 55 Implementation Guidance and Illustrations Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/220/954/#55-implementation-guidance-and-illustrations) 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): 2026-09-09T23:07:12.667Z to 2026-09-09T23:07:12.667Z Record version: sha256:b8bfe576bbcc487d25f069294d408181deae30b531d4df584f3ec8d23759caa7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 220-954-55: 55 Implementation Guidance and Illustrations [Read section](https://asc.understandingaccounting.org/asc/220/954/#55-implementation-guidance-and-illustrations) SEC content: no ##### [220-954-55-1](https://asc.understandingaccounting.org/asc/220/954/#220-954-55-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:07:12.667Z to 2026-09-09T23:07:12.667Z Record version: sha256:86b923240e365bcfaaa060e86d2ead54c8ffd8a9977fa882c10d96f7eab788da 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 [Paragraph superseded by Accounting Standards Update No. 2016-14](https://asc.understandingaccounting.org/updates/asu-2016-14/). #### Illustrations ##### [220-954-55-2](https://asc.understandingaccounting.org/asc/220/954/#220-954-55-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:07:12.667Z to 2026-09-09T23:07:12.667Z Record version: sha256:5115b3abe06fc9f29a5f5231a14c3b119b7647c8e9055d3fca3017ddfe22b37d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Example illustrates the accounting treatment and financial statement presentation for other-than-trading debt securities of a not-for-profit health care entity. ##### [220-954-55-3](https://asc.understandingaccounting.org/asc/220/954/#220-954-55-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:07:12.667Z to 2026-09-09T23:07:12.667Z Record version: sha256:d24f5bdd667a6f677a20691a5620eb9be6531d9d3e688254db0dd59c26d97494 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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. ##### [220-954-55-4](https://asc.understandingaccounting.org/asc/220/954/#220-954-55-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:07:12.667Z to 2026-09-09T23:07:12.667Z Record version: sha256:17fffedb1e62af5f80a11b1e267b240f197760d1e3b94020de10d10191aec110 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The journal entries are as follows: - Entry at the end of Year 1 to adjust the recorded value of the securities to fair value. - ![ ](https://asc.understandingaccounting.org/asc-img/GUID-BE37986E-0C66-410A-8C31-AAB3E4894CF5-low.gif) Investments $200 Change in net unrealized gains and losses on investments $200 - Entry at the end of Year 2 to record the sale of the securities. - ![ ](https://asc.understandingaccounting.org/asc-img/GUID-A1FE0B16-8732-4DDC-9FB8-2079A6621034-low.gif) Cash $400 Realized gain $300 Investments 100 Change in net unrealized gains and losses on investments 200 Investments 200 ##### [220-954-55-5](https://asc.understandingaccounting.org/asc/220/954/#220-954-55-5) Pending content: no Source downloaded (UTC): 2026-09-09T23:07:12.667Z to 2026-09-09T23:07:12.667Z Record version: sha256:6e5c76f8455d3cab5a69279f7ee52b70fccd55dc62bf75a8b4b91da1f51055f9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. As discussed in paragraph [954-220-45-9](https://asc.understandingaccounting.org/asc/220/954/#220-954-45-9), unrealized gains and losses on debt securities (except for trading debt securities) are reported in the statement of operations outside of the [performance indicator](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 realized gains and losses are reported in the statement of operations within the performance indicator. ##### [220-954-55-6](https://asc.understandingaccounting.org/asc/220/954/#220-954-55-6) Pending content: no Source downloaded (UTC): 2026-09-09T23:07:12.667Z to 2026-09-09T23:07:12.667Z Record version: sha256:aa6bae89a7728323a36f6ecb1e58b2108edc438e99fd27865db8fe028ad455fd Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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 [954-220-55-3 through 55-5](https://asc.understandingaccounting.org/asc/220/954/#220-954-55-3) are as follows. - ![ ](https://asc.understandingaccounting.org/asc-img/GUID-6CAF0465-D086-4A5D-B812-2F15E450C85E-low.gif) 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 - ![ ](https://asc.understandingaccounting.org/asc-img/GUID-16721A69-F109-42F1-90BE-40F39536DE0B-low.gif) 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