# ASC 310-954-40: Receivables — Health Care Entities — 40 Derecognition

Source: FASB Accounting Standards Codification, Basic View

[Read online](https://asc.understandingaccounting.org/asc/310/954/#40-derecognition)

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): 2026-09-09T23:31:46.704Z to 2026-09-09T23:31:46.704Z

Record version: sha256:283dbffb8521e761321a048916c2348ce87784cc78c329b8ad0dc27cd05561bb

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


## ASC 310-954-40: 40 Derecognition

[Read section](https://asc.understandingaccounting.org/asc/310/954/#40-derecognition)

SEC content: no

#### Receivables from Related Entities

##### [310-954-40-1](https://asc.understandingaccounting.org/asc/310/954/#310-954-40-1)

Pending content: no

Source downloaded (UTC): 2026-09-09T23:31:46.704Z to 2026-09-09T23:31:46.704Z

Record version: sha256:b79e6c32b4fc8313924d7f8b560557e9a08e16034d7e055e0f168df542779f1e

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


If a receivable from a related entity is not to be repaid, or if the related entity is perceived as unable to repay, the write-off of the receivable may be recognized as an [equity transfer](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).") (see paragraph [954-220-45-2](https://asc.understandingaccounting.org/asc/220/954/#220-954-45-2)) with the transferor reducing net assets and the transferee increasing net assets at the date such determination is made.