ASC

ASC 430-954

Health Care Entities

430 Deferred Revenue

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In brief

IntermediateRevenueIndustry-specificTransition and effective datesRecognition

ASC 430-954 formerly provided the deferred revenue guidance for health care entities, principally continuing care retirement communities (CCRCs) accounting for nonrefundable advance (entrance) fees and refundable advance fees. Every paragraph in the subtopic has been superseded by ASU 2014-09 (Revenue from Contracts with Customers), and the transition paragraph 430-954-65-1 was superseded on 06/26/2015 following ASU 2012-01. The subtopic therefore contains no operative guidance; deferred revenue for health care entities is now addressed under ASC 606 and ASC 954-405/954-606.

Key points (5)
  • All recognition, measurement, derecognition, presentation, and disclosure paragraphs (430-954-05-1 through 430-954-55-3) are marked 'Paragraph superseded by Accounting Standards Update No. 2014-09.'
  • The transition and effective date paragraph 430-954-65-1 was superseded on 06/26/2015 after the end of the transition period stated in ASU 2012-01, Health Care Entities (Topic 954): Continuing Care Retirement Communities—Refundable Advance Fees.
  • Because no operative text remains, an entity may not cite ASC 430-954 as authoritative support for deferring health care revenue.
  • Advance fees and other amounts collected before services are rendered by health care entities are now evaluated as contract liabilities under ASC 606 (see 606-10-45-2) and the related health care industry guidance in ASC 954-606.
  • Obligations to provide future services and use of facilities by continuing care retirement communities remain addressed in Topic 954 (see 954-440), not in this subtopic.

For students. This subtopic is a shell: everything in it was wiped out by ASU 2014-09, so the exam point is knowing that health care advance fees are now contract liabilities under ASC 606, not legacy deferred revenue. The common mistake is citing pre-2014 CCRC entrance-fee deferral rules from this subtopic as if they were still authoritative.

deferred revenuesuperseded guidancecontinuing care retirement communitynonrefundable advance feesrefundable advance feescontract liabilityhealth care entitiesrevenue recognition transition

Machine-generated study aid for ASC 430-954. Check the source paragraphs below.

430-954-00Status

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430-954-00-1
The following table identifies the changes made to this Subtopic.
Paragraph Action Accounting Standards Update Date
Conduit Debt Security Added Maintenance Update 2014-20 (PDF) 09/29/2014
Nonpublic Entity (1st Def.) Amended Maintenance Update 2014-20 (PDF) 09/29/2014
Nonpublic Entity Superseded Accounting Standards Update No. 2014-09 05/28/2014
954-430-05-1 Superseded Accounting Standards Update No. 2014-09 05/28/2014
954-430-15-1 Superseded Accounting Standards Update No. 2014-09 05/28/2014
954-430-25-1 through 25-1B Superseded Accounting Standards Update No. 2014-09 05/28/2014
954-430-25-1 Amended Accounting Standards Update No. 2012-01 07/24/2012
954-430-25-1A Added Accounting Standards Update No. 2012-01 07/24/2012
954-430-25-1B Added Accounting Standards Update No. 2012-01 07/24/2012
954-430-30-1 Superseded Accounting Standards Update No. 2014-09 05/28/2014
954-430-35-1 through 35-5
 Superseded Accounting Standards Update No. 2014-09 05/28/2014
954-430-35-4 Amended Accounting Standards Update No. 2012-01 07/24/2012
954-430-40-1 Superseded Accounting Standards Update No. 2014-09 05/28/2014
954-430-45-1 Superseded Accounting Standards Update No. 2014-09 05/28/2014
954-430-45-1 Added Accounting Standards Update No. 2012-04 10/01/2012
954-430-50-1 through 50-4
 Superseded Accounting Standards Update No. 2014-09 05/28/2014
954-430-50-2 Amended Accounting Standards Update No. 2012-04 10/01/2012
954-430-55-1 through 55-3
 Superseded Accounting Standards Update No. 2014-09 05/28/2014
954-430-65-1 Added Accounting Standards Update No. 2012-01 07/24/2012

430-954-05Overview and Background

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430-954-15Scope and Scope Exceptions

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430-954-25Recognition

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430-954-30Initial Measurement

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430-954-35Subsequent Measurement

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430-954-40Derecognition

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430-954-45Other Presentation Matters

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430-954-50Disclosure

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430-954-55Implementation Guidance and Illustrations

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430-954-65Transition and Open Effective Date Information

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430-954-65-1
Paragraph superseded on 06/26/2015 after the end of the transition period stated in Accounting Standards Update No. 2012-01, Health Care Entities (Topic 954): Continuing Care Retirement Communities—Refundable Advance Fees.

Related subtopics