{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/805/954/#05-overview-and-background","source":"FASB Accounting Standards Codification, Basic View","usage":"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.","topic":"805","topic_title":"Business Combinations","subtopic":"805-954","subtopic_title":"Health Care Entities","section":{"number":"05","label":"05 Overview and Background","anchor":"05-overview-and-background","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"805-954-05-1","para":"05-1","html":"<div class=\"asc-body\"><div class=\"norm-text\">This Subtopic provides guidance on a transaction or other event in which a not-for-profit, business-oriented health care entity (see Section <a altsource=\"GUID-168B17B7-1552-446C-B055-39809B8A60E7.ditamap\" class=\"ditamap\">954-10-05</a>) that is the reporting entity combines with one or more other <a href=\"/glossary/n/#not-for-profit-entity\" class=\"term\" title=\"An entity that possesses the following characteristics, in varying degrees, that distinguish it from a business entity: Contributions of significant amounts of resources from resource providers who do not expect commensurate or proportionate pecuniary return Operating purposes other than to provide goods or services at a profit Absence of ownership interests like those of business entities. Entities that clearly fall outside this definition include the following: All investor-owned entities Entities that provide dividends, lower costs, or other economic benefits directly and proportionately to their owners, members, or participants, such as mutual insurance entities, credit unions, farm and rural electric cooperatives, and employee benefit plans.\"><span>not-for-profit entities</span></a> (NFPs), <a href=\"/glossary/b/#business\" class=\"term\" title=\"Paragraphs 805-10-55-3A805-10-55-4805-10-55-5805-10-55-6 and 805-10-55-8805-10-55-9 define what is considered a business.\"><span>businesses</span></a>, or <a href=\"/glossary/n/#nonprofit-activity\" class=\"term\" title=\"An integrated set of activities and assets that is capable of being conducted and managed for the purpose of providing benefits, other than goods or services at a profit or profit equivalent, as a fulfillment of an entity's purpose or mission (for example, goods or services to beneficiaries, customers, or members). As with a not-for-profit entity, a nonprofit activity possesses characteristics that distinguish it from a business or a for-profit business entity.\"><span>nonprofit activities</span></a> in a transaction that meets the definition of a <a href=\"/glossary/m/#merger-of-not-for-profit-entities\" class=\"term\" title=\"A transaction or other event in which the governing bodies of two or more not-for-profit entities cede control of those entities to create a new not-for-profit entity.\"><span>merger of not-for-profit entities</span></a> or an <a href=\"/glossary/a/#acquisition-by-a-not-for-profit-entity\" class=\"term\" title=\"A transaction or other event in which a not-for-profit acquirer obtains control of one or more nonprofit activities or businesses and initially recognizes their assets and liabilities in the acquirer's financial statements. When applicable guidance in Topic 805 is applied by a not-for-profit entity, the term business combination has the same meaning as this term has for a for-profit entity. Likewise, a reference to business combinations in guidance that links to Topic 805 has the same meaning as a reference to acquisitions by not-for-profit entities.\"><span>acquisition by a not-for-profit entity</span></a>.</div></div>","snippet":"This Subtopic provides guidance on a transaction or other event in which a not-for-profit, business-oriented health care entity (see Section 954-10-05) that is the reporting entity combines with one or more other not-for…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:72308cf36f219fb0a2cd54ed0665e39302c6d72bc217495773f29440cc2ae7b8","downloaded_from":"2026-09-10T01:27:16.595Z","last_downloaded_at":"2026-09-10T01:27:16.595Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477818","source_sha256":"61ce556e046baad78d14ec8da364f0cf314d900c0972819f227ce348d28cc8bd"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a97188546e450207c8e044bcf15ef178f825b4078f389be3f386211a8d07a3c8","downloaded_from":"2026-09-10T01:27:16.595Z","last_downloaded_at":"2026-09-10T01:27:16.595Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477818","source_sha256":"61ce556e046baad78d14ec8da364f0cf314d900c0972819f227ce348d28cc8bd"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e022e9ce16b33e9c8bcab8e46e5f5ec1e7315e6fd99e1aec07c3a7c693491373","downloaded_from":"2026-09-10T01:27:16.595Z","last_downloaded_at":"2026-09-10T01:27:16.595Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477818","source_sha256":"61ce556e046baad78d14ec8da364f0cf314d900c0972819f227ce348d28cc8bd"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e022e9ce16b33e9c8bcab8e46e5f5ec1e7315e6fd99e1aec07c3a7c693491373","downloaded_from":"2026-09-10T01:27:16.595Z","last_downloaded_at":"2026-09-10T01:27:16.595Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477818","source_sha256":"61ce556e046baad78d14ec8da364f0cf314d900c0972819f227ce348d28cc8bd"}}