# ASC 325-954: Investments—Other — Health Care Entities Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/325/954/) 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): 2026-09-09T23:46:56.481Z to 2026-09-09T23:47:10.538Z Record version: sha256:76e02cc5acfbe7c70e95d73c4086c00287f0b287e9be3776eea8a8ce200ecb9c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 325-954: Investments—Other — Health Care Entities ### Machine-generated study aids ```json { "summary": "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": [ "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)." ], "categories": [ "Subsequent measurement", "Impairment", "Presentation", "Industry-specific" ], "audience_level": "intermediate", "student_note": "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.", "related_topics": [ "954-10", "954-320", "954-360", "360-10", "320", "958-320" ], "key_concepts": [ "non-financial-instrument investments", "investment real estate", "oil and gas interests", "amortized cost", "long-lived asset impairment", "health care entities", "financially interrelated entity", "balance sheet presentation of investments" ] } ``` Source downloaded (UTC): 2026-09-09T23:46:56.481Z to 2026-09-09T23:46:56.481Z Record version: sha256:b0394804342632b769fbb59e4f02234db3c0b99292a4024cd13537f86cd25657 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 325-954-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/325/954/#00-status) SEC content: no ##### [325-954-00-1](https://asc.understandingaccounting.org/asc/325/954/#325-954-00-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:46:56.481Z to 2026-09-09T23:46:56.481Z Record version: sha256:39dd1da4f2a9c9c6a62a7730e91a5586f6a1316c0292e306f746c481c6e04f1b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following table identifies the changes made to this Subtopic.
ParagraphActionAccounting Standards UpdateDate
Financial InstrumentAmendedAccounting Standards Update No. 2024-0203/29/2024
Source downloaded (UTC): 2026-09-09T23:46:58.897Z to 2026-09-09T23:46:58.897Z Record version: sha256:e1d169ce962527587affa64bc872efb5fb7cfc4a292a71ff454700525f3d2101 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 325-954-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/325/954/#05-overview-and-background) SEC content: no ##### [325-954-05-1](https://asc.understandingaccounting.org/asc/325/954/#325-954-05-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:46:58.897Z to 2026-09-09T23:46:58.897Z Record version: sha256:714aa7a4b2689d571e6365725f82149f3e3d6f4e49f43b29750bc62d8906e467 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic provides guidance on investments of the health care entities within the scope of this Topic if those investments are not [financial instruments](https://asc.understandingaccounting.org/glossary/f/#financial-instrument "Cash, evidence of an ownership interest in an entity, or a contract that both: Imposes on one entity a contractual obligation either: To deliver cash or another financial instrument to a second entity To exchange other financial instruments on potentially unfavorable terms with the second entity. Conveys to that second entity a contractual right either: To receive cash or another financial instrument from the first entity To exchange other financial instruments on potentially favorable terms with the first entity. The use of the term financial instrument in this definition is recursive (because the term financial instrument is included in it), though it is not circular. The definition requires a chain of contractual obligations that ends with the delivery of cash or an ownership interest in an entity. Any number of obligations to deliver financial instruments can be links in a chain that qualifies a particular contract as a financial instrument. Contractual rights and contractual obligations encompass both those that are conditioned on the occurrence of a specified event and those that are not. All contractual rights (contractual obligations) that are financial instruments meet the definition of asset (liability) set forth in FASB Concepts Statement No. 6, Elements of Financial Statements, although some may not be recognized as assets (liabilities) in financial statements—that is, they may be off-balance-sheet—because they fail to meet some other criterion for recognition. For some financial instruments, the right is held by or the obligation is due from (or the obligation is owed to or by) a group of entities rather than a single entity. (P) December 16, 2024; (N) December 16, 2025105-10-65-9Cash, evidence of an ownership interest in an entity, or a contract that both: Imposes on one entity a contractual obligation either: To deliver cash or another financial instrument to a second entity To exchange other financial instruments on potentially unfavorable terms with the second entity. Conveys to that second entity a contractual right either: To receive cash or another financial instrument from the first entity To exchange other financial instruments on potentially favorable terms with the first entity. The use of the term financial instrument in this definition is recursive (because the term financial instrument is included in it), though it is not circular. The definition requires a chain of contractual obligations that ends with the delivery of cash or an ownership interest in an entity. Any number of obligations to deliver financial instruments can be links in a chain that qualifies a particular contract as a financial instrument. Contractual rights and contractual obligations encompass both those that are conditioned on the occurrence of a specified event and those that are not. Some contractual rights (contractual obligations) that are financial instruments may not be recognized in financial statements—that is, they may be off-balance-sheet—because they fail to meet some other criterion for recognition. For some financial instruments, the right is held by or the obligation is due from (or the obligation is owed to or by) a group of entities rather than a single entity."). Source downloaded (UTC): 2026-09-09T23:47:02.209Z to 2026-09-09T23:47:02.209Z Record version: sha256:40f4f6f51b4b6cb4945caf1396dae4dc3b3f032ad83161e9f3c244dc4e1d7793 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 325-954-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/325/954/#15-scope-and-scope-exceptions) SEC content: no #### Overall Guidance ##### [325-954-15-1](https://asc.understandingaccounting.org/asc/325/954/#325-954-15-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:47:02.209Z to 2026-09-09T23:47:02.209Z Record version: sha256:84107b5bc90280941dabfc636661b173b408568ce9fd25b6587e0fb2101c510c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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](https://asc.understandingaccounting.org/asc/325/954/#325-954-15-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:47:02.209Z to 2026-09-09T23:47:02.209Z Record version: sha256:006ba3f413e6ccdd69e82246b470d73891908057ceeee2b8194543d705d5e3cd Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic provides guidance on investments that are other than [financial instruments](https://asc.understandingaccounting.org/glossary/f/#financial-instrument "Cash, evidence of an ownership interest in an entity, or a contract that both: Imposes on one entity a contractual obligation either: To deliver cash or another financial instrument to a second entity To exchange other financial instruments on potentially unfavorable terms with the second entity. Conveys to that second entity a contractual right either: To receive cash or another financial instrument from the first entity To exchange other financial instruments on potentially favorable terms with the first entity. The use of the term financial instrument in this definition is recursive (because the term financial instrument is included in it), though it is not circular. The definition requires a chain of contractual obligations that ends with the delivery of cash or an ownership interest in an entity. Any number of obligations to deliver financial instruments can be links in a chain that qualifies a particular contract as a financial instrument. Contractual rights and contractual obligations encompass both those that are conditioned on the occurrence of a specified event and those that are not. All contractual rights (contractual obligations) that are financial instruments meet the definition of asset (liability) set forth in FASB Concepts Statement No. 6, Elements of Financial Statements, although some may not be recognized as assets (liabilities) in financial statements—that is, they may be off-balance-sheet—because they fail to meet some other criterion for recognition. For some financial instruments, the right is held by or the obligation is due from (or the obligation is owed to or by) a group of entities rather than a single entity. (P) December 16, 2024; (N) December 16, 2025105-10-65-9Cash, evidence of an ownership interest in an entity, or a contract that both: Imposes on one entity a contractual obligation either: To deliver cash or another financial instrument to a second entity To exchange other financial instruments on potentially unfavorable terms with the second entity. Conveys to that second entity a contractual right either: To receive cash or another financial instrument from the first entity To exchange other financial instruments on potentially favorable terms with the first entity. The use of the term financial instrument in this definition is recursive (because the term financial instrument is included in it), though it is not circular. The definition requires a chain of contractual obligations that ends with the delivery of cash or an ownership interest in an entity. Any number of obligations to deliver financial instruments can be links in a chain that qualifies a particular contract as a financial instrument. Contractual rights and contractual obligations encompass both those that are conditioned on the occurrence of a specified event and those that are not. Some contractual rights (contractual obligations) that are financial instruments may not be recognized in financial statements—that is, they may be off-balance-sheet—because they fail to meet some other criterion for recognition. For some financial instruments, the right is held by or the obligation is due from (or the obligation is owed to or by) a group of entities rather than a single entity."). #### Other Considerations ##### [325-954-15-3](https://asc.understandingaccounting.org/asc/325/954/#325-954-15-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:47:02.209Z to 2026-09-09T23:47:02.209Z Record version: sha256:b7f58df752ae79576ef037164cace73d35bb3609be6a03e356f30d4db8a27aac Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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](https://asc.understandingaccounting.org/glossary/f/#financially-interrelated-entities "A recipient entity and a specified beneficiary are financially interrelated entities if the relationship between them has both of the following characteristics: One of the entities has the ability to influence the operating and financial decisions of the other. One of the entities has an ongoing economic interest in the net assets of the other."). Source downloaded (UTC): 2026-09-09T23:47:07.535Z to 2026-09-09T23:47:07.535Z Record version: sha256:01da7f64dbae6e781b2d4edb2db0aa66e81395a93560cde5d3ea7bb5406a3ee0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 325-954-35: 35 Subsequent Measurement [Read section](https://asc.understandingaccounting.org/asc/325/954/#35-subsequent-measurement) SEC content: no ##### [325-954-35-1](https://asc.understandingaccounting.org/asc/325/954/#325-954-35-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:47:07.535Z to 2026-09-09T23:47:07.535Z Record version: sha256:aeab2ef5a96c2f38b8eaade2bd476f5eb7ddee17db223ea9fa6925d671fb9a1d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Other types of investments that are not [financial instruments](https://asc.understandingaccounting.org/glossary/f/#financial-instrument "Cash, evidence of an ownership interest in an entity, or a contract that both: Imposes on one entity a contractual obligation either: To deliver cash or another financial instrument to a second entity To exchange other financial instruments on potentially unfavorable terms with the second entity. Conveys to that second entity a contractual right either: To receive cash or another financial instrument from the first entity To exchange other financial instruments on potentially favorable terms with the first entity. The use of the term financial instrument in this definition is recursive (because the term financial instrument is included in it), though it is not circular. The definition requires a chain of contractual obligations that ends with the delivery of cash or an ownership interest in an entity. Any number of obligations to deliver financial instruments can be links in a chain that qualifies a particular contract as a financial instrument. Contractual rights and contractual obligations encompass both those that are conditioned on the occurrence of a specified event and those that are not. All contractual rights (contractual obligations) that are financial instruments meet the definition of asset (liability) set forth in FASB Concepts Statement No. 6, Elements of Financial Statements, although some may not be recognized as assets (liabilities) in financial statements—that is, they may be off-balance-sheet—because they fail to meet some other criterion for recognition. For some financial instruments, the right is held by or the obligation is due from (or the obligation is owed to or by) a group of entities rather than a single entity. (P) December 16, 2024; (N) December 16, 2025105-10-65-9Cash, evidence of an ownership interest in an entity, or a contract that both: Imposes on one entity a contractual obligation either: To deliver cash or another financial instrument to a second entity To exchange other financial instruments on potentially unfavorable terms with the second entity. Conveys to that second entity a contractual right either: To receive cash or another financial instrument from the first entity To exchange other financial instruments on potentially favorable terms with the first entity. The use of the term financial instrument in this definition is recursive (because the term financial instrument is included in it), though it is not circular. The definition requires a chain of contractual obligations that ends with the delivery of cash or an ownership interest in an entity. Any number of obligations to deliver financial instruments can be links in a chain that qualifies a particular contract as a financial instrument. Contractual rights and contractual obligations encompass both those that are conditioned on the occurrence of a specified event and those that are not. Some contractual rights (contractual obligations) that are financial instruments may not be recognized in financial statements—that is, they may be off-balance-sheet—because they fail to meet some other criterion for recognition. For some financial instruments, the right is held by or the obligation is due from (or the obligation is owed to or by) a group of entities rather than a single entity.") (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. Source downloaded (UTC): 2026-09-09T23:47:10.538Z to 2026-09-09T23:47:10.538Z Record version: sha256:376d80171ada880741fe0ecd103243f205c15b97acbc1bef9d8f083d6ee2162e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 325-954-45: 45 Other Presentation Matters [Read section](https://asc.understandingaccounting.org/asc/325/954/#45-other-presentation-matters) SEC content: no ##### [325-954-45-1](https://asc.understandingaccounting.org/asc/325/954/#325-954-45-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:47:10.538Z to 2026-09-09T23:47:10.538Z Record version: sha256:c4e7eeb5dec6752cbeb177ad61236d652a351393f9762ffa9d1b6757e9658876 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Pursuant to paragraph [954-360-45-1](https://asc.understandingaccounting.org/asc/360/954/#360-954-45-1), property held for investment purposes shall be presented as part of investments.