ASC

ASC 325-954

Health Care Entities

325 Investments—Other

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In brief

IntermediateSubsequent measurementImpairmentPresentationIndustry-specific

This Subtopic governs how health care entities (within the scope of Topic 954) account for investments that are NOT financial instruments — for example, investment real estate or certain oil and gas interests. Such investments are reported at amortized cost and tested for impairment under the Impairment or Disposal of Long-Lived Assets Subsections of Subtopic 360-10. Property held for investment purposes is presented within investments on the balance sheet.

Key points (5)
  • The Subtopic applies only to investments of in-scope health care entities that are other than financial instruments (325-954-15-2; 325-954-05-1).
  • Non-financial-instrument investments such as real estate or certain oil and gas interests are reported at amortized cost, not fair value (325-954-35-1).
  • Those investments are subject to impairment considerations consistent with the Impairment or Disposal of Long-Lived Assets Subsections of Subtopic 360-10 (325-954-35-1).
  • Property held for investment purposes is presented as part of investments, per paragraph 954-360-45-1 (325-954-45-1).
  • The scope follows Section 954-10-15, except that it does not cover investments of a not-for-profit, business-oriented health care entity that are held by a financially interrelated entity (325-954-15-1; 325-954-15-3).

For students. The trap is assuming all health care entity "investments" get fair value treatment: financial instruments do (see 954-320/954-325 and Topic 320), but real estate and similar non-financial investments stay at amortized cost with long-lived asset impairment testing under 360-10.

non-financial-instrument investmentsinvestment real estateoil and gas interestsamortized costlong-lived asset impairmenthealth care entitiesfinancially interrelated entitybalance sheet presentation of investments

Machine-generated study aid for ASC 325-954. Check the source paragraphs below.

325-954-00Status

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325-954-00-1
The following table identifies the changes made to this Subtopic.
Paragraph Action Accounting Standards Update Date
Financial Instrument Amended Accounting Standards Update No. 2024-02 03/29/2024

325-954-05Overview and Background

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325-954-05-1
This Subtopic provides guidance on investments of the health care entities within the scope of this Topic if those investments are not financial instruments.

325-954-15Scope and Scope Exceptions

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Overall Guidance

325-954-15-1
This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section 954-10-15, with specific instrument exceptions noted below.

Instruments

325-954-15-2
This Subtopic provides guidance on investments that are other than financial instruments.

Other Considerations

325-954-15-3
This Subtopic does not provide guidance on investments of a not-for-profit business-oriented health care entity that are held by a financially interrelated entity.

325-954-35Subsequent Measurement

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325-954-35-1
Other types of investments that are not financial instruments (such as real estate or certain oil and gas interests) are reported at amortized cost and are subject to impairment considerations consistent with the Impairment or Disposal of Long-lived Assets Subsections of Subtopic 360-10.

325-954-45Other Presentation Matters

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325-954-45-1
Pursuant to paragraph 954-360-45-1, property held for investment purposes shall be presented as part of investments.

Related subtopics