# ASC 340-954: Other Assets and Deferred Costs — Health Care Entities Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/340/954/) 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): 2026-09-09T23:58:43.326Z to 2026-09-09T23:58:56.807Z Record version: sha256:ba81d9e40b64f1c8102a77456cce77c1c9e232e09bb9c55e8afe33ee096ac363 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 340-954: Other Assets and Deferred Costs — Health Care Entities ### Machine-generated study aids ```json { "summary": "This Subtopic covers \"other assets and deferred costs\" of health care entities — prepaid expenses, deposits, and deferred expenses, including amounts paid to physicians for future services such as administering a hospital department or providing community services that further the entity's mission (340-954-05-2). If such prepaid costs are deferred, they must be amortized over the period benefited (340-954-35-2), and all such items are classified as current or noncurrent as appropriate (340-954-45-1). The former recognition guidance (Sections 25 and part of 35) was superseded by ASU 2014-09, so contract cost questions now fall under ASC 340-40 and revenue under ASC 606.", "key_points": [ "Scope follows the health care entity scope in Section 954-10-15 (340-954-15-1).", "Other assets of health care entities may include prepaid expenses, deposits, and deferred expenses, and prepaid costs may include amounts paid to physicians for future services (340-954-05-2).", "Deferred prepaid costs, including physician prepayments, shall be amortized over the period benefited (340-954-35-2).", "Prepaid expenses, deposits, deferred expenses, and prepaid costs are classified as current or noncurrent as appropriate on a classified balance sheet (340-954-45-1).", "All recognition guidance in Section 25 (340-954-25-1 through 25-3) and 340-954-35-1 were superseded by ASU 2014-09, shifting contract cost accounting to Subtopic 340-40." ], "categories": [ "Subsequent measurement", "Presentation", "Industry-specific", "Recognition" ], "audience_level": "intermediate", "student_note": "This is a short industry overlay: the only substantive rules left are amortize deferred prepaid costs over the period benefited and classify them current/noncurrent. The common mistake is looking here for contract acquisition or fulfillment cost guidance — ASU 2014-09 gutted the recognition paragraphs, so go to ASC 340-40 instead.", "related_topics": [ "340-40", "606", "954-10", "954-605", "954-405" ], "key_concepts": [ "prepaid expenses", "deferred costs", "payments to physicians for future services", "amortization over period benefited", "current versus noncurrent classification", "health care entities", "deposits" ] } ``` Source downloaded (UTC): 2026-09-09T23:58:43.326Z to 2026-09-09T23:58:43.326Z Record version: sha256:2e1c4226e9910f8b9a19f8150d15f528e13338c7c66500f44b68a8535c7627e8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 340-954-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/340/954/#00-status) SEC content: no ##### [340-954-00-1](https://asc.understandingaccounting.org/asc/340/954/#340-954-00-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:58:43.326Z to 2026-09-09T23:58:43.326Z Record version: sha256:86979a5e79ef191a2168c705f7e5c8a240a2d7789a194a605718c2065f593bd5 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
954-340-25-1 through 25-3
SupersededAccounting Standards Update No. 2014-0905/28/2014
954-340-35-1SupersededAccounting Standards Update No. 2014-0905/28/2014
Source downloaded (UTC): 2026-09-09T23:58:46.723Z to 2026-09-09T23:58:46.723Z Record version: sha256:4fed2b1153caa2497964366e85b977a2b686b2c85bc4e95e93f41cb7d129d2a2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 340-954-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/340/954/#05-overview-and-background) SEC content: no ##### [340-954-05-1](https://asc.understandingaccounting.org/asc/340/954/#340-954-05-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:58:46.723Z to 2026-09-09T23:58:46.723Z Record version: sha256:44194a8cce43d6382bccb13f0587f12ffb08043d5b3344b45849ba885d57f960 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic addresses other assets and deferred costs for health care entities within the scope of this Topic. ##### [340-954-05-2](https://asc.understandingaccounting.org/asc/340/954/#340-954-05-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:58:46.723Z to 2026-09-09T23:58:46.723Z Record version: sha256:2b9e76d0175ca6d30187cb030460ab424e7213428e73a3bea4cfdcd096a466f7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Other assets may include prepaid expenses, deposits, and deferred expenses. Prepaid costs may include amounts paid to physicians for future services (for example, administering a hospital department or providing community services that further the entity's mission). Source downloaded (UTC): 2026-09-09T23:58:48.619Z to 2026-09-09T23:58:48.619Z Record version: sha256:b9cdcb0f6dd6eb809d653c17558271fddd849f7c5f5c584e02726ab4f95f99ab Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 340-954-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/340/954/#15-scope-and-scope-exceptions) SEC content: no #### Overall Guidance ##### [340-954-15-1](https://asc.understandingaccounting.org/asc/340/954/#340-954-15-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:58:48.619Z to 2026-09-09T23:58:48.619Z Record version: sha256:b6b518eee46d0edcbd5d204500ec63144c6863525081d6a332d8c26025ba9bbd 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. Source downloaded (UTC): 2026-09-09T23:58:51.239Z to 2026-09-09T23:58:51.239Z Record version: sha256:d4241d554231f0a4db8461d38120ab2f163dab679568844b61869f2ce695b3b4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 340-954-25: 25 Recognition [Read section](https://asc.understandingaccounting.org/asc/340/954/#25-recognition) SEC content: no ##### [340-954-25-1](https://asc.understandingaccounting.org/asc/340/954/#340-954-25-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:58:51.239Z to 2026-09-09T23:58:51.239Z Record version: sha256:f0aaf33ac9951a973104326a60bd96fefed92e990a94c81f0ed487e8c4f2b66f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2014-09](https://asc.understandingaccounting.org/updates/asu-2014-09/). ##### [340-954-25-2](https://asc.understandingaccounting.org/asc/340/954/#340-954-25-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:58:51.239Z to 2026-09-09T23:58:51.239Z Record version: sha256:2226b18ac5db51184d5461c0903c1f333e7db0f52e048b7f27d63aec477f909e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2014-09](https://asc.understandingaccounting.org/updates/asu-2014-09/). ##### [340-954-25-3](https://asc.understandingaccounting.org/asc/340/954/#340-954-25-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:58:51.239Z to 2026-09-09T23:58:51.239Z Record version: sha256:31a5901f6e9664fb3cb9ee594ed8b4d03380d37f54443fad2572e27281722086 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2014-09](https://asc.understandingaccounting.org/updates/asu-2014-09/). Source downloaded (UTC): 2026-09-09T23:58:54.219Z to 2026-09-09T23:58:54.219Z Record version: sha256:d2e10c151d8bc625c58d2755fc7613381e5cacc46f2d989a73502f69cbb64c63 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 340-954-35: 35 Subsequent Measurement [Read section](https://asc.understandingaccounting.org/asc/340/954/#35-subsequent-measurement) SEC content: no ##### [340-954-35-1](https://asc.understandingaccounting.org/asc/340/954/#340-954-35-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:58:54.219Z to 2026-09-09T23:58:54.219Z Record version: sha256:4080fb3fdb189fb7fdae7d274b895ba9871890172abdaf9084bf7a3943074d24 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2014-09](https://asc.understandingaccounting.org/updates/asu-2014-09/). #### Prepaid Costs ##### [340-954-35-2](https://asc.understandingaccounting.org/asc/340/954/#340-954-35-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:58:54.219Z to 2026-09-09T23:58:54.219Z Record version: sha256:79bd7026dd136e1b862b72a5819bf7310f04d96ffc68373556ddfbfe1d2b7fc1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Prepaid costs, including amounts paid to physicians for future services (for example, administering a hospital department or providing community services that further the entity's mission), if deferred, shall be amortized over the period benefited. Source downloaded (UTC): 2026-09-09T23:58:56.807Z to 2026-09-09T23:58:56.807Z Record version: sha256:8af8c7040fdb9bcc8e6054159d925a94d4668e593352e86860afeba7454a9755 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 340-954-45: 45 Other Presentation Matters [Read section](https://asc.understandingaccounting.org/asc/340/954/#45-other-presentation-matters) SEC content: no ##### [340-954-45-1](https://asc.understandingaccounting.org/asc/340/954/#340-954-45-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:58:56.807Z to 2026-09-09T23:58:56.807Z Record version: sha256:18f8a20b69cb8974253bc3b9647e1a51276cb78355af9c4ffb42783f02e191b8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Prepaid expenses, deposits, deferred expenses, and prepaid costs shall be classified as current or noncurrent as appropriate.