# ASC 805-954: Business Combinations — Health Care Entities Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/805/954/) 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): 2026-09-10T01:27:13.331Z to 2026-09-10T01:27:35.856Z Record version: sha256:7ab989ee08f3cf02d53281454e31e268b81464128bb99f2a882ff83868974e2c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 805-954: Business Combinations — Health Care Entities ### Machine-generated study aids ```json { "summary": "ASC 805-954 supplements Subtopic 958-805 for not-for-profit, business-oriented health care entities that combine with other NFPs, businesses, or nonprofit activities in a transaction meeting the definition of a merger of not-for-profit entities or an acquisition by a not-for-profit entity. Its incremental rules address classification of acquired debt securities, and—most importantly—whether particular acquisition-related amounts (contingent consideration remeasurements, the separate charge, inherent contributions, step-acquisition gains or losses) are reported within or outside the performance indicator. It also prescribes pro forma performance indicator disclosures for public health care entities.", "key_points": [ "The Subtopic applies only to not-for-profit, business-oriented health care entities and only to transactions meeting the definition of a merger of not-for-profit entities or an acquisition by a not-for-profit entity (805-954-15-2 through 15-3).", "Excluded are joint venture formations, acquisitions of assets that are not a business or nonprofit activity, common-control combinations (see Subtopic 805-50), and situations in which the NFP obtains control but does not consolidate under Section 958-810-25 (805-954-15-4).", "When applying paragraph 805-20-25-6, the acquirer classifies particular acquired investments in debt securities as trading or other than trading securities (805-954-25-1).", "Changes in the fair value of contingent consideration recognized under 958-805-35-3 are reported within the performance indicator unless the arrangement is a hedging instrument for which Subtopic 954-815 requires recognition outside the performance indicator (805-954-35-1).", "A separate charge recognized under 958-805-25-29 is presented within the performance indicator, while an inherent contribution received under 958-805-25-31 is within the performance indicator if without donor restrictions and outside it if with donor restrictions (805-954-45-1 through 45-2).", "In an acquisition achieved in stages, the gain or loss from remeasuring the previously held equity interest is included in the performance indicator, and amounts previously recognized outside the performance indicator are reclassified into that gain or loss at the acquisition date (805-954-45-3).", "Public not-for-profit, business-oriented health care entities must disclose supplemental pro forma performance indicator information for mergers and acquisitions, including acquiree performance indicator since the acquisition date, prior-comparative-period pro forma amounts, and material nonrecurring pro forma adjustments; if impracticable (as defined in 250-10-45-9), that fact and the reason must be disclosed (805-954-50-1 through 50-3)." ], "categories": [ "Business combinations", "Not-for-profit", "Presentation", "Disclosure" ], "audience_level": "advanced", "student_note": "The whole point of this Subtopic is display: the recognition and measurement rules come from 958-805, and 805-954 only tells a health care NFP whether an item lands inside or outside the performance indicator. A common mistake is assuming all inherent contributions are within the performance indicator—donor-restricted inherent contributions are presented outside it.", "related_topics": [ "958-805", "954-805", "805-50", "958-810", "954-815", "805-20" ], "key_concepts": [ "performance indicator", "merger of not-for-profit entities", "acquisition by a not-for-profit entity", "inherent contribution", "contingent consideration", "acquisition achieved in stages", "supplemental pro forma information", "donor restrictions" ] } ``` Source downloaded (UTC): 2026-09-10T01:27:13.331Z to 2026-09-10T01:27:13.331Z Record version: sha256:713ca6d8cf0697a529a9df8bbf14024dd6a2cbeb51a5e0382d12b3bc69a03106 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 805-954-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/805/954/#00-status) SEC content: no ##### [805-954-00-1](https://asc.understandingaccounting.org/asc/805/954/#805-954-00-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:27:13.331Z to 2026-09-10T01:27:13.331Z Record version: sha256:d335b4fba4f2c9b92f493e1618ea06e58025806f620da8de9f993a04eed98ac3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following table identifies the changes made to this Subtopic.
ParagraphActionAccounting Standards UpdateDate
AcquirerAmendedAccounting Standards Update No. 2025-0305/12/2025
AcquirerAddedAccounting Standards Update No. 2010-0701/28/2010
Acquisition DateAddedAccounting Standards Update No. 2010-0701/28/2010
Acquisition by a Not-for-Profit EntityAddedAccounting Standards Update No. 2010-0701/28/2010
BusinessAmendedAccounting Standards Update No. 2017-0101/05/2017
BusinessAddedAccounting Standards Update No. 2010-0701/28/2010
Conduit Debt SecurityAddedMaintenance Update 2014-20 (PDF)09/29/2014
Control of a Not-for-Profit EntityAddedAccounting Standards Update No. 2010-0701/28/2010
Inherent ContributionAddedAccounting Standards Update No. 2010-0701/28/2010
Merger DateAddedAccounting Standards Update No. 2010-0701/28/2010
Merger of Not-for-Profit EntitiesAddedAccounting Standards Update No. 2010-0701/28/2010
Nonprofit ActivityAddedAccounting Standards Update No. 2010-0701/28/2010
Not-for-Profit EntityAddedAccounting Standards Update No. 2010-0701/28/2010
Performance IndicatorAddedAccounting Standards Update No. 2010-0701/28/2010
Public EntityAmendedMaintenance Update 2014-20 (PDF)09/29/2014
Public EntityAddedAccounting Standards Update No. 2010-0701/28/2010
Trading SecuritiesAddedAccounting Standards Update No. 2010-0701/28/2010
Variable Interest EntitySupersededAccounting Standards Update No. 2025-0305/12/2025
954-805-05-1AddedAccounting Standards Update No. 2010-0701/28/2010
954-805-10-1AddedAccounting Standards Update No. 2010-0701/28/2010
954-805-15-1 through 15-4
AddedAccounting Standards Update No. 2010-0701/28/2010
954-805-25-1AmendedAccounting Standards Update No. 2016-0101/05/2016
954-805-25-1AddedAccounting Standards Update No. 2010-0701/28/2010
954-805-35-1AddedAccounting Standards Update No. 2010-0701/28/2010
954-805-45-1 through 45-3
AddedAccounting Standards Update No. 2010-0701/28/2010
954-805-45-2AmendedAccounting Standards Update No. 2016-1408/18/2016
954-805-50-1 through 50-3
AmendedAccounting Standards Update No. 2025-1112/08/2025
954-805-50-1 through 50-3
AddedAccounting Standards Update No. 2010-0701/28/2010
954-805-50-2AmendedAccounting Standards Update No. 2012-0410/01/2012
Source downloaded (UTC): 2026-09-10T01:27:16.595Z to 2026-09-10T01:27:16.595Z Record version: sha256:e022e9ce16b33e9c8bcab8e46e5f5ec1e7315e6fd99e1aec07c3a7c693491373 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 805-954-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/805/954/#05-overview-and-background) SEC content: no ##### [805-954-05-1](https://asc.understandingaccounting.org/asc/805/954/#805-954-05-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:27:16.595Z to 2026-09-10T01:27:16.595Z Record version: sha256:72308cf36f219fb0a2cd54ed0665e39302c6d72bc217495773f29440cc2ae7b8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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-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](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 [nonprofit activities](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.") in a transaction that meets the definition of 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.") or 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."). Source downloaded (UTC): 2026-09-10T01:27:20.255Z to 2026-09-10T01:27:20.255Z Record version: sha256:3e1a563c2ab3f745a4e27a81048eac09b6bfe6aed1f9f3ec86fa8f46dd56c522 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 805-954-10: 10 Objectives [Read section](https://asc.understandingaccounting.org/asc/805/954/#10-objectives) SEC content: no ##### [805-954-10-1](https://asc.understandingaccounting.org/asc/805/954/#805-954-10-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:27:20.255Z to 2026-09-10T01:27:20.255Z Record version: sha256:70a20c3d96488791ddeda175457f7151bc51707e8fb916442692f096819c94bb Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The objective of this Subtopic, in combination with the guidance in Subtopic 958-805, is to improve the relevance, representational faithfulness, and comparability of the information that a not-for-profit, business-oriented health care entity provides in its financial reports about a combination with one or more other [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. 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. Source downloaded (UTC): 2026-09-10T01:27:28.147Z to 2026-09-10T01:27:28.147Z Record version: sha256:994f179e1d68e25ee7c876ab7a3e2d1a4d124a9b6adb98eca02b6cebfdf75edd Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 805-954-25: 25 Recognition [Read section](https://asc.understandingaccounting.org/asc/805/954/#25-recognition) SEC content: no ##### [805-954-25-1](https://asc.understandingaccounting.org/asc/805/954/#805-954-25-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:27:28.147Z to 2026-09-10T01:27:28.147Z Record version: sha256:9d050f8f7e75331d1d6718eefebc78993b37c325a5298d84c98d4079b5d05f7d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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. Source downloaded (UTC): 2026-09-10T01:27:30.356Z to 2026-09-10T01:27:30.356Z Record version: sha256:d166540d770174c1caa0125efde370147818e815c2acef4a8cf4dc0a7de20183 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 805-954-35: 35 Subsequent Measurement [Read section](https://asc.understandingaccounting.org/asc/805/954/#35-subsequent-measurement) SEC content: no ##### [805-954-35-1](https://asc.understandingaccounting.org/asc/805/954/#805-954-35-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:27:30.356Z to 2026-09-10T01:27:30.356Z Record version: sha256:88e6040ad66df74c1e3ce46a69fd7c19f152c9f7c37c69aed2874dcb7d83cd81 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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 report the changes in the fair value of contingent consideration recognized in accordance with paragraph [958-805-35-3](https://asc.understandingaccounting.org/asc/805/958/#805-958-35-3) within the [performance indicator](https://asc.understandingaccounting.org/glossary/p/#performance-indicator "A performance indicator reports results of operations. A performance indicator and the income from continuing operations reported by for-profit health care entities generally are consistent, except for transactions that clearly are not applicable to one kind of entity (for example, for-profit health care entities typically would not receive contributions, and not-for-profit health care entities would not award stock compensation). That is, a performance indicator is analogous to income from continuing operations of a for-profit entity.") unless the arrangement is a hedging instrument for which Subtopic 954-815 requires the entity to recognize the changes outside the performance indicator. Source downloaded (UTC): 2026-09-10T01:27:33.224Z to 2026-09-10T01:27:33.224Z Record version: sha256:c3eaf7fc24e338a0dd68a1accddc43b5bb51691dfcce21567901ec969068673a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 805-954-45: 45 Other Presentation Matters [Read section](https://asc.understandingaccounting.org/asc/805/954/#45-other-presentation-matters) SEC content: no ##### [805-954-45-1](https://asc.understandingaccounting.org/asc/805/954/#805-954-45-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:27:33.224Z to 2026-09-10T01:27:33.224Z Record version: sha256:224bf818a9ba73e3ffa25cbff51cc85721d5a303244ec76b048599507b5574c5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If 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.") is a not-for-profit, business-oriented health care entity and a separate charge is recognized in accordance with paragraph [958-805-25-29](https://asc.understandingaccounting.org/asc/805/958/#805-958-25-29), it shall be presented within the [performance indicator](https://asc.understandingaccounting.org/glossary/p/#performance-indicator "A performance indicator reports results of operations. A performance indicator and the income from continuing operations reported by for-profit health care entities generally are consistent, except for transactions that clearly are not applicable to one kind of entity (for example, for-profit health care entities typically would not receive contributions, and not-for-profit health care entities would not award stock compensation). That is, a performance indicator is analogous to income from continuing operations of a for-profit entity."). ##### [805-954-45-2](https://asc.understandingaccounting.org/asc/805/954/#805-954-45-2) Pending content: no Source downloaded (UTC): 2026-09-10T01:27:33.224Z to 2026-09-10T01:27:33.224Z Record version: sha256:155ebe1d0e07a83636f8259d8698895bb486106578299cdd0a521c6cf0bfab4e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If an acquirer is a not-for-profit, business-oriented health care entity, whether the [inherent contribution](https://asc.understandingaccounting.org/glossary/i/#inherent-contribution "A contribution that results if an entity voluntarily transfers assets (or net assets) or performs services for another entity in exchange for either no assets or for assets of substantially lower value and unstated rights or privileges of a commensurate value are not involved.") received recognized in accordance with paragraph [958-805-25-31](https://asc.understandingaccounting.org/asc/805/958/#805-958-25-31) is presented within or outside of the performance indicator depends on whether the contribution is without donor restrictions or with donor restrictions. A contribution without donor restrictions shall be presented within the performance indicator. A contribution with donor restrictions shall be presented outside of the performance indicator. ##### [805-954-45-3](https://asc.understandingaccounting.org/asc/805/954/#805-954-45-3) Pending content: no Source downloaded (UTC): 2026-09-10T01:27:33.224Z to 2026-09-10T01:27:33.224Z Record version: sha256:5e96c069fa212de69c9d14fcbbf8e1480c37ad0adaaa4076d917bec60b16fcd6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In an acquisition achieved in stages (see paragraphs [805-10-25-9 through 25-10](https://asc.understandingaccounting.org/asc/805/10/#805-10-25-9) ), an acquirer that is a not-for-profit, business-oriented health care entity shall include in its performance indicator the gain or loss resulting from remeasuring its previously held equity interest in the acquiree. In prior reporting periods, that acquirer may have recognized changes in the value of its equity interest in the acquiree outside the performance indicator (for example, because the investment was classified as other than trading). If so, the amount that was recognized outside the performance indicator shall be reclassified and included in the calculation of gain or loss on the previously held equity interest as of the acquisition date. Source downloaded (UTC): 2026-09-10T01:27:35.856Z to 2026-09-10T01:27:35.856Z Record version: sha256:0df75cfb3d5dae1cad7d2f5ceb6ec1e419126c3d9300b181c4913302139308b7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 805-954-50: 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/805/954/#50-disclosure) SEC content: no ##### [805-954-50-1](https://asc.understandingaccounting.org/asc/805/954/#805-954-50-1) Pending content: yes Source downloaded (UTC): 2026-09-10T01:27:35.856Z to 2026-09-10T01:27:35.856Z Record version: sha256:476b5f191e61d19db204733856eb0be56c09219ca8832cf18eaebcbbeb52ede9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For 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."), a new entity that is both a not-for-profit, business-oriented health care entity and a [public entity](https://asc.understandingaccounting.org/glossary/p/#public-entity "A business entity or a not-for-profit entity that meets any of the following conditions: It has issued debt or equity securities or is a conduit bond obligor for conduit debt securities that are traded in a public market (a domestic or foreign stock exchange or an over-the-counter market, including local or regional markets). It is required to file financial statements with the Securities and Exchange Commission (SEC). It provides financial statements for the purpose of issuing any class of securities in a public market.") shall disclose the [performance indicator](https://asc.understandingaccounting.org/glossary/p/#performance-indicator "A performance indicator reports results of operations. A performance indicator and the income from continuing operations reported by for-profit health care entities generally are consistent, except for transactions that clearly are not applicable to one kind of entity (for example, for-profit health care entities typically would not receive contributions, and not-for-profit health care entities would not award stock compensation). That is, a performance indicator is analogous to income from continuing operations of a for-profit entity.") for the current reporting period as though the [merger date](https://asc.understandingaccounting.org/glossary/m/#merger-date "The date on which the merger becomes effective.") had been the beginning of the annual reporting period (supplemental pro forma information). Transition date:(P) December 16, 2027; (N) December 16, 2028Transition guidance: [270-10-65-1](https://asc.understandingaccounting.org/asc/270/10/#270-10-65-1)For 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."), a new entity that is both a not-for-profit, business-oriented health care entity and a [public entity](https://asc.understandingaccounting.org/glossary/p/#public-entity "A business entity or a not-for-profit entity that meets any of the following conditions: It has issued debt or equity securities or is a conduit bond obligor for conduit debt securities that are traded in a public market (a domestic or foreign stock exchange or an over-the-counter market, including local or regional markets). It is required to file financial statements with the Securities and Exchange Commission (SEC). It provides financial statements for the purpose of issuing any class of securities in a public market.") shall disclose in interim and annual reporting periods the [performance indicator](https://asc.understandingaccounting.org/glossary/p/#performance-indicator "A performance indicator reports results of operations. A performance indicator and the income from continuing operations reported by for-profit health care entities generally are consistent, except for transactions that clearly are not applicable to one kind of entity (for example, for-profit health care entities typically would not receive contributions, and not-for-profit health care entities would not award stock compensation). That is, a performance indicator is analogous to income from continuing operations of a for-profit entity.") for the current reporting period as though the [merger date](https://asc.understandingaccounting.org/glossary/m/#merger-date "The date on which the merger becomes effective.") had been the beginning of the annual reporting period (supplemental pro forma information). ##### [805-954-50-2](https://asc.understandingaccounting.org/asc/805/954/#805-954-50-2) Pending content: yes Source downloaded (UTC): 2026-09-10T01:27:35.856Z to 2026-09-10T01:27:35.856Z Record version: sha256:b21b0d6295da6a6100ed89328d6213c31282b35ebf91f56919ca0366d9c3fbb8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For 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."), a not-for-profit, business-oriented health care entity that is a public entity shall disclose all of the following: 1. a The performance indicator attributable to the acquiree since the [acquisition date](https://asc.understandingaccounting.org/glossary/a/#acquisition-date "The date on which the acquirer obtains control of the acquiree.") that is included in the statement of activities for the reporting period. 2. b The performance indicator as though the acquisition date for all acquisitions that occurred during the current year had occurred the beginning of the annual reporting period (supplemental pro forma information). 3. c If the acquirer presents comparative financial statements, the performance indicator as though the acquisition date for all acquisitions that occurred during the current year had occurred as of the beginning of the comparable prior annual reporting period (supplemental pro forma information). For example, for a calendar year-end entity, disclosures would be provided for an acquisition by a not-for-profit entity that occurs in 20X2, as if it occurred on January 1, 20X1. Such disclosures would not be revised if 20X2 is presented for comparative purposes with the 20X3 financial statements (even if 20X2 is the earliest period presented). 4. d The nature and amount of any material, nonrecurring pro forma adjustments directly attributable to the acquisition(s) included in the reported pro forma performance indicator (supplemental pro forma information). Transition date:(P) December 16, 2027; (N) December 16, 2028Transition guidance: [270-10-65-1](https://asc.understandingaccounting.org/asc/270/10/#270-10-65-1)For 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."), a not-for-profit, business-oriented health care entity that is a public entity shall disclose all of the following in interim and annual reporting periods: 1. a The performance indicator attributable to the acquiree since the [acquisition date](https://asc.understandingaccounting.org/glossary/a/#acquisition-date "The date on which the acquirer obtains control of the acquiree.") that is included in the statement of activities for the reporting period. 2. b The performance indicator as though the acquisition date for all acquisitions that occurred during the current year had occurred the beginning of the annual reporting period (supplemental pro forma information). 3. c If the acquirer presents comparative financial statements, the performance indicator as though the acquisition date for all acquisitions that occurred during the current year had occurred as of the beginning of the comparable prior annual reporting period (supplemental pro forma information). For example, for a calendar year-end entity, disclosures would be provided for an acquisition by a not-for-profit entity that occurs in 20X2, as if it occurred on January 1, 20X1. Such disclosures would not be revised if 20X2 is presented for comparative purposes with the 20X3 financial statements (even if 20X2 is the earliest period presented). 4. d The nature and amount of any material, nonrecurring pro forma adjustments directly attributable to the acquisition(s) included in the reported pro forma performance indicator (supplemental pro forma information). ##### [805-954-50-3](https://asc.understandingaccounting.org/asc/805/954/#805-954-50-3) Pending content: yes Source downloaded (UTC): 2026-09-10T01:27:35.856Z to 2026-09-10T01:27:35.856Z Record version: sha256:0d9f4b0c29591cf2e25b8804ff845b2e5fff7d923ab3332b3d481f4c2af86c33 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If the disclosure of any of the information required by paragraph [954-805-50-2](https://asc.understandingaccounting.org/asc/805/954/#805-954-50-2) or paragraph [954-805-50-1](https://asc.understandingaccounting.org/asc/805/954/#805-954-50-1) is impracticable, a not-for-profit, business-oriented health care entity shall disclose that fact and explain why the disclosure is impracticable. The term _impracticable_ has the same meaning as _impracticability_ in paragraph [250-10-45-9](https://asc.understandingaccounting.org/asc/250/10/#250-10-45-9). Transition date:(P) December 16, 2027; (N) December 16, 2028Transition guidance: [270-10-65-1](https://asc.understandingaccounting.org/asc/270/10/#270-10-65-1)If the disclosure of any of the information required by paragraph [954-805-50-2](https://asc.understandingaccounting.org/asc/805/954/#805-954-50-2) or paragraph [954-805-50-1](https://asc.understandingaccounting.org/asc/805/954/#805-954-50-1) is impracticable, a not-for-profit, business-oriented health care entity shall disclose in interim and annual reporting periods that fact and explain why the disclosure is impracticable. The term _impracticable_ has the same meaning as _impracticability_ in paragraph [250-10-45-9](https://asc.understandingaccounting.org/asc/250/10/#250-10-45-9).