ASC 225-954
Health Care Entities
225 Income Statement
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In brief
IntroductoryPresentationFinancial statement presentationIndustry-specificTransition and effective datesASC 225-954 formerly provided income statement presentation guidance for health care entities (e.g., the performance indicator and reporting of patient service revenue). Every paragraph in the subtopic — Sections 05, 15, 45, 50, and 55 — was superseded by Maintenance Update 2017-19, so the subtopic contains no operative guidance. Health care income statement presentation guidance now resides in Topic 954 (principally 954-205 and 954-225 as relocated) and, for revenue, in Topic 606.
Key points (5)
- All paragraphs of ASC 225-954 (225-954-05-1 through 225-954-55-6) are marked 'Paragraph superseded by Maintenance Update 2017-19' and impose no requirements.
- Because Topic 225 (Income Statement) was largely retired/relocated, researchers must not cite 225-954 as current authority for health care presentation.
- Income statement presentation for health care entities is now found in the Topic 954 industry guidance (e.g., 954-205 Presentation of Financial Statements) rather than in the Topic 225 industry subtopic.
- Revenue recognition and presentation for patient service revenue is governed by Topic 606, which eliminated the former presentation of the provision for bad debts as a deduction from revenue.
- Superseded paragraphs are retained in the Codification only for historical/transition reference; comparative periods should follow the guidance effective in those periods.
For students. This subtopic is a dead end: every paragraph was superseded by Maintenance Update 2017-19, so citing it as live GAAP is an error. The common misunderstanding is assuming the old health care income statement rules (such as reporting bad debts as a revenue deduction) still live here — look to Topic 954 and Topic 606 instead.
Machine-generated study aid for ASC 225-954. Check the source paragraphs below.
225-954-00Status
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225-954-05Overview and Background
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225-954-15Scope and Scope Exceptions
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225-954-20Glossary
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225-954-45Other Presentation Matters
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225-954-50Disclosure
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225-954-55Implementation Guidance and Illustrations
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