# ASC 805-954-15: Business Combinations — Health Care Entities — 15 Scope and Scope Exceptions Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/805/954/#15-scope-and-scope-exceptions) 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): 2026-09-10T01:27:23.603Z to 2026-09-10T01:27:23.603Z Record version: sha256:35a52758ab6a36d24ce150a085615309faffd43ff8177c5fbfa45e8e2eb4ad22 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 805-954-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/805/954/#15-scope-and-scope-exceptions) SEC content: no #### Overall Guidance ##### [805-954-15-1](https://asc.understandingaccounting.org/asc/805/954/#805-954-15-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:27:23.603Z to 2026-09-10T01:27:23.603Z Record version: sha256:f30683c11d7cc096a94457e4b0506c0d72a65bebf086c1fec75d76ea7201e9a4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic follows the same scope and scope exceptions as the Overall Subtopic, see Section 954-10-15, with the following exceptions noted below. #### Entities ##### [805-954-15-2](https://asc.understandingaccounting.org/asc/805/954/#805-954-15-2) Pending content: no Source downloaded (UTC): 2026-09-10T01:27:23.603Z to 2026-09-10T01:27:23.603Z Record version: sha256:621a46549564451412d48a7556e32bb323dba32e86e407bcb96d99d4eb6299c7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in this Subtopic applies only to not-for-profit, business-oriented health care entities (see Section 954-10-05). #### Transactions ##### [805-954-15-3](https://asc.understandingaccounting.org/asc/805/954/#805-954-15-3) Pending content: no Source downloaded (UTC): 2026-09-10T01:27:23.603Z to 2026-09-10T01:27:23.603Z Record version: sha256:a210b34747e48f25f5633a9a6934b46ee36c64a9f4bd7c4cf07cb367850f467a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in this Subtopic applies to a transaction or other event that meets the definition of either of the following: 1. a A [merger of not-for-profit entities](https://asc.understandingaccounting.org/glossary/m/#merger-of-not-for-profit-entities "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.") 2. b An [acquisition by a not-for-profit entity](https://asc.understandingaccounting.org/glossary/a/#acquisition-by-a-not-for-profit-entity "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."). ##### [805-954-15-4](https://asc.understandingaccounting.org/asc/805/954/#805-954-15-4) Pending content: no Source downloaded (UTC): 2026-09-10T01:27:23.603Z to 2026-09-10T01:27:23.603Z Record version: sha256:c1f7766be0201d4562c878b027244eac3134f7b1fa61c2921379fc83affe8393 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic does not apply to any of the following: 1. a The formation of a joint venture 2. b The acquisition of an asset or a group of assets that does not constitute either a [business](https://asc.understandingaccounting.org/glossary/b/#business "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.") or a [nonprofit activity](https://asc.understandingaccounting.org/glossary/n/#nonprofit-activity "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."). (Subtopic 805-50 addresses the typical accounting for an asset acquisition.) 3. c A combination between [not-for-profit entities](https://asc.understandingaccounting.org/glossary/n/#not-for-profit-entity "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.") (NFPs), businesses, or nonprofit activities under common control. (Subtopic 805-50 addresses the typical accounting for a transfer of assets or an exchange of shares between entities under common control.) 4. d A transaction or other event in which an NFP obtains [control of a not-for-profit entity](https://asc.understandingaccounting.org/glossary/c/#control-of-a-not-for-profit-entity "See Control.") but does not consolidate that entity, as permitted or required by Section 958-810-25. Similarly, this Subtopic does not apply if an NFP that obtained control in a transaction or other event in which consolidation was permitted but not required decides in a subsequent annual reporting period to begin consolidating a controlled entity that it initially chose not to consolidate.