# ASC 605-954-05: Revenue Recognition — Health Care Entities — 05 Overview and Background

Source: FASB Accounting Standards Codification, Basic View

[Read online](https://asc.understandingaccounting.org/asc/605/954/#05-overview-and-background)

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): 2026-09-10T00:50:44.909Z to 2026-09-10T00:50:44.909Z

Record version: sha256:bb32a4b95fe51778467d69c2adcece14fd2b4370007755bee447a6ea631451f5

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


## ASC 605-954-05: 05 Overview and Background

[Read section](https://asc.understandingaccounting.org/asc/605/954/#05-overview-and-background)

SEC content: no

##### [605-954-05-1](https://asc.understandingaccounting.org/asc/605/954/#605-954-05-1)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:50:44.909Z to 2026-09-10T00:50:44.909Z

Record version: sha256:4691d35b4e000c263a466e38b141b35383d64759539a9b2ebf59d30e52178df3

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


Topic 606 on [revenue](https://asc.understandingaccounting.org/glossary/r/#revenue "Inflows or other enhancements of assets of an entity or settlements of its liabilities (or a combination of both) from delivering or producing goods, rendering services, or other activities that constitute the entity's ongoing major or central operations.") from [contracts](https://asc.understandingaccounting.org/glossary/c/#contract "An agreement between two or more parties that creates enforceable rights and obligations.") with [customers](https://asc.understandingaccounting.org/glossary/c/#customer "A party that has contracted with an entity to obtain goods or services that are an output of the entity's ordinary activities in exchange for consideration.") provides guidance on revenue recognition for contracts with customers for health care entities within the scope of this Topic. This Subtopic provides recognition guidance for:

1.  a
    
    Charity care
    
2.  b
    
    Related fundraising entities.

##### [605-954-05-2](https://asc.understandingaccounting.org/asc/605/954/#605-954-05-2)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:50:44.909Z to 2026-09-10T00:50:44.909Z

Record version: sha256:5c0b5a8fc9dd8027de83f5271867e8cc12a090c123d74c6368573b2453b0abff

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/).

##### [605-954-05-3](https://asc.understandingaccounting.org/asc/605/954/#605-954-05-3)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:50:44.909Z to 2026-09-10T00:50:44.909Z

Record version: sha256:11d6a6538a5466d05f4baa8bbfb302f7fd121112b518c1c460bb50fb75ae0011

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/).

##### [605-954-05-4](https://asc.understandingaccounting.org/asc/605/954/#605-954-05-4)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:50:44.909Z to 2026-09-10T00:50:44.909Z

Record version: sha256:7991252024b8f169ec19a425a6fe5d930213819448a34c35ebdf8f0c9dbdb929

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/).

##### [605-954-05-5](https://asc.understandingaccounting.org/asc/605/954/#605-954-05-5)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:50:44.909Z to 2026-09-10T00:50:44.909Z

Record version: sha256:923b087c0f797827ca1702ec64af66bf0e3a165ba2065b494bd6df0af6a74826

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/).

##### [605-954-05-6](https://asc.understandingaccounting.org/asc/605/954/#605-954-05-6)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:50:44.909Z to 2026-09-10T00:50:44.909Z

Record version: sha256:11997e74602d886e4097ef292868053bded7c18148dc3564855f59a4da031ae5

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/).

##### [605-954-05-7](https://asc.understandingaccounting.org/asc/605/954/#605-954-05-7)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:50:44.909Z to 2026-09-10T00:50:44.909Z

Record version: sha256:87a325d1cbeed777b3956bbed5c5d1a0078cf76086d6254b43db192f93f1e580

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/).

##### [605-954-05-8](https://asc.understandingaccounting.org/asc/605/954/#605-954-05-8)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:50:44.909Z to 2026-09-10T00:50:44.909Z

Record version: sha256:1ebfa70b5b58848c75d91f44d793d6e265ce9270e1b44843b83716d51570fd81

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/).

##### [605-954-05-9](https://asc.understandingaccounting.org/asc/605/954/#605-954-05-9)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:50:44.909Z to 2026-09-10T00:50:44.909Z

Record version: sha256:5594ef16d97eb1bdd472a923f59e1467b260d272720f9e6efa23553af41f12c8

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/).

##### [605-954-05-10](https://asc.understandingaccounting.org/asc/605/954/#605-954-05-10)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:50:44.909Z to 2026-09-10T00:50:44.909Z

Record version: sha256:64b14af8c5ce0bedd849dc4219e93cb7fd6ff9e2e7f31f8779ee166be19bb001

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/).

##### [605-954-05-11](https://asc.understandingaccounting.org/asc/605/954/#605-954-05-11)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:50:44.909Z to 2026-09-10T00:50:44.909Z

Record version: sha256:2e2f4572de4c50717ba4c5bfeecab7f787d0dbcd8c45907fa36f3ff63237ad6f

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/).

##### [605-954-05-12](https://asc.understandingaccounting.org/asc/605/954/#605-954-05-12)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:50:44.909Z to 2026-09-10T00:50:44.909Z

Record version: sha256:c187252508424a33a0bacb9f0fed87873bca22cd3b923f0c521e9a09fe1e15bd

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/).

##### [605-954-05-13](https://asc.understandingaccounting.org/asc/605/954/#605-954-05-13)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:50:44.909Z to 2026-09-10T00:50:44.909Z

Record version: sha256:b0ed7a950692873645698839328dc53226f8d27c44e5a2887ff6cdb0530230d5

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/).

##### [605-954-05-14](https://asc.understandingaccounting.org/asc/605/954/#605-954-05-14)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:50:44.909Z to 2026-09-10T00:50:44.909Z

Record version: sha256:8108962bea2c0c20041c0f2796f8615e24c5553f361321a1507b459e22c5e447

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/).