# ASC 805-954-25: Business Combinations — Health Care Entities — 25 Recognition

Source: FASB Accounting Standards Codification, Basic View

[Read online](https://asc.understandingaccounting.org/asc/805/954/#25-recognition)

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## ASC 805-954-25: 25 Recognition

[Read section](https://asc.understandingaccounting.org/asc/805/954/#25-recognition)

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##### [805-954-25-1](https://asc.understandingaccounting.org/asc/805/954/#805-954-25-1)

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When applying the guidance in paragraph [805-20-25-6](https://asc.understandingaccounting.org/asc/805/20/#805-20-25-6), an [acquirer](https://asc.understandingaccounting.org/glossary/a/#acquirer "The entity that obtains control of the acquiree. However, in a business combination in which a variable interest entity (VIE) is acquired, the primary beneficiary of that entity always is the acquirer. (P) December 16, 2026; (N) December 16, 2026805-10-65-5The entity that obtains control of the acquiree.See paragraphs 805-10-25-4805-10-25-5 for guidance on determining the acquirer.") that is a not-for-profit, business-oriented health care entity shall classify particular investments in debt securities as [trading securities](https://asc.understandingaccounting.org/glossary/t/#trading-securities "Securities that are bought and held principally for the purpose of selling them in the near term and therefore held for only a short period of time. Trading generally reflects active and frequent buying and selling, and trading securities are generally used with the objective of generating profits on short-term differences in price.") or other than trading securities.