# ASC 810-954: Consolidation — Health Care Entities Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/810/954/) 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): 2026-09-10T01:32:41.551Z to 2026-09-10T01:33:00.907Z Record version: sha256:ab91ed5fd77f2d7aa554fb0e80e8b7c3f6787a4a3ba7987f1928c0b6832d81b3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 810-954: Consolidation — Health Care Entities ### Machine-generated study aids ```json { "summary": "This Subtopic routes health care entities to the right consolidation model depending on whether the reporting entity is investor-owned or a not-for-profit, business-oriented health care entity. Investor-owned providers apply the VIE Subsections first, then the General Subsections and the Consolidation of Entities Controlled by Contract Subsections of 810-10; NFP health care entities are exempt from the VIE model (unless used to circumvent it) and instead apply 810-10 General/controlled-by-contract guidance for for-profit investees and Subtopic 958-810 for relationships with other NFPs. It also treats sole corporate membership in an NFP as a controlling financial interest and requires malpractice trust funds to be included in the entity's financial statements.", "key_points": [ "An investor-owned health care entity must first test whether an entity it holds an interest in is a VIE under 810-10-15-14 and apply the VIE Subsections; if not a VIE, it applies only the General Subsections of 810-10 to assess a controlling financial interest (810-954-15-2(a)-(b)).", "Contractual management relationships (for example, with a physician practice) are evaluated under the Consolidation of Entities Controlled by Contract Subsections of Subtopic 810-10 (810-954-15-2(c), 810-954-15-3(c), 810-954-60-1).", "Not-for-profit, business-oriented health care entities are not subject to the VIE Subsections unless the NFP is used by a business entity in a manner similar to a VIE to circumvent those provisions, though the NFP may be a related party under 810-10-25-42 through 25-44 (810-954-15-3(a); 810-954-45-2).", "An NFP health care entity's relationships with other NFPs involving control, an economic interest, or both are evaluated under Subtopic 958-810; general or limited partner interests in for-profit limited partnerships (or functionally equivalent LLCs) follow 958-810-25-11 through 25-29 (810-954-15-3(dd), (f)).", "Sole corporate membership in a not-for-profit entity, like ownership of a majority voting interest in a for-profit entity, is a controlling financial interest unless control does not rest with the sole corporate member (e.g., bankruptcy or severe legal or contractual limitations) (810-954-45-3A); supermajority board voting requirements may overcome the presumption of control (810-954-45-2).", "A noncontrolling interest is provided only if represented by an economic interest that shares in operating results or the residual interest upon dissolution (810-954-45-3B), and an entity required to be consolidated cannot instead be reported at fair value under 958-325-35-6 (810-954-45-3C).", "A malpractice trust fund, whether legally revocable or irrevocable, generally is included in the health care entity's financial statements—split between current and noncurrent assets, with its revenues and administrative expenses in the statement of operations—and its existence and revocability must be disclosed (810-954-45-4; 810-954-50-1)." ], "categories": [ "Consolidation", "Industry-specific", "Not-for-profit", "Presentation" ], "audience_level": "advanced", "student_note": "Exam traps here are (1) forgetting that NFP business-oriented health care entities are scoped out of the VIE model and instead use 958-810, and (2) assuming sole corporate membership is not \"ownership\"—it is treated as a controlling financial interest. Also remember a noncontrolling interest is presented only when the holder actually shares in operating results or residual net assets.", "related_topics": [ "958-810", "810-10", "954-810", "810-30", "970-323", "323-10" ], "key_concepts": [ "controlling financial interest", "sole corporate membership", "variable interest entity scope exception", "entities controlled by contract", "physician practice management", "noncontrolling interest", "economic interest", "malpractice trust fund" ] } ``` Source downloaded (UTC): 2026-09-10T01:32:41.551Z to 2026-09-10T01:32:41.551Z Record version: sha256:ebd74e31daaedf0b7ded3d8f98f615afb793d1901ad836972a9cdd6b94c4442b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 810-954-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/810/954/#00-status) SEC content: no ##### [810-954-00-1](https://asc.understandingaccounting.org/asc/810/954/#810-954-00-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:32:41.551Z to 2026-09-10T01:32:41.551Z Record version: sha256:59e4b1e2f675834b4d99cd1b1412ac5164305586c625dfb9bc8934d2096c9c7b 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
Economic InterestAmendedAccounting Standards Update No. 2016-1408/18/2016
Legal EntityAddedAccounting Standards Update No. 2017-0201/12/2017
954-810-15-2AmendedAccounting Standards Update No. 2015-0202/18/2015
954-810-15-3AmendedAccounting Standards Update No. 2025-1212/17/2025
954-810-15-3AmendedAccounting Standards Update No. 2017-0201/12/2017
954-810-15-3AmendedAccounting Standards Update No. 2015-0202/18/2015
954-810-45-3BAmendedAccounting Standards Update No. 2016-1912/14/2016
954-810-45-3BAmendedAccounting Standards Update No. 2010-0802/02/2010
954-810-50-2AddedAccounting Standards Update No. 2010-0701/28/2010
Source downloaded (UTC): 2026-09-10T01:32:44.347Z to 2026-09-10T01:32:44.347Z Record version: sha256:d2689c5bc56d87fa93eaf823ede03c98f3e3ade8d121c216acf22ac84e080c78 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 810-954-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/810/954/#05-overview-and-background) SEC content: no ##### [810-954-05-1](https://asc.understandingaccounting.org/asc/810/954/#810-954-05-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:32:44.347Z to 2026-09-10T01:32:44.347Z Record version: sha256:f361b4234fe3b26d4a38f9865a291706fc5fae4c3186e958d7e2a6851d8076b9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic addresses consolidation accounting for health care entities within the scope of this Topic. ##### [810-954-05-2](https://asc.understandingaccounting.org/asc/810/954/#810-954-05-2) Pending content: no Source downloaded (UTC): 2026-09-10T01:32:44.347Z to 2026-09-10T01:32:44.347Z Record version: sha256:6ac953e25104f74c29b818d3a0733acd2e8786c0a1b3587ff2f888be022f5522 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An integrated health care system typically consists of multiple related entities, operating both for-profit entities and not-for-profit entities (NFPs). A not-for-profit parent entity may be the sole corporate member or, through other means, it may control other entities such as a not-for-profit hospital, a not-for-profit medical foundation that contracts with a for-profit physician group, or other not-for-profit providers such as a long-term care center, a substance abuse center, a surgery center, or an outpatient clinic. The system also may own stock in various for-profit ventures such as [health maintenance organizations](https://asc.understandingaccounting.org/glossary/h/#health-maintenance-organization "A generic group of medical care entities organized to provide defined health care services to members in return for fixed, periodic premiums (usually paid monthly) that are paid in advance.") or insurance entities that may or may not provide patient care. Fundraising typically is accomplished through a separate foundation. Foundations, auxiliaries, guilds, and similar entities frequently assist and, in many instances, are related to the health care entity. ##### [810-954-05-3](https://asc.understandingaccounting.org/asc/810/954/#810-954-05-3) Pending content: no Source downloaded (UTC): 2026-09-10T01:32:44.347Z to 2026-09-10T01:32:44.347Z Record version: sha256:ec0a5075366c154f3a34669fb5ef2a7f959dc233192e917210ea1d3628355dde Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The rights and powers of the controlling entity may vary depending on the legal structure of the controlled entity and the nature of [control](https://asc.understandingaccounting.org/glossary/c/#control "The direct or indirect ability to determine the direction of management and policies through ownership, contract, or otherwise."). The majority owner of a for-profit entity's voting stock or the sole corporate member of an NFP may not only have the ability to determine the direction of the controlled entity but also have the proportionate right to (or the responsibility for) operating results and a residual interest in the net assets upon dissolution. However, in other situations, the rights of the controlling party may be more limited. For example, in the case of a sole general partner in a limited partnership, the limited partners—and not the general partner—may be entitled to the net assets upon dissolution. Source downloaded (UTC): 2026-09-10T01:32:47.021Z to 2026-09-10T01:32:47.021Z Record version: sha256:6aa470c039d20059ff0a2387e3e3c9b44318d094651b08e61cf408d6240c70f0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 810-954-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/810/954/#15-scope-and-scope-exceptions) SEC content: no #### Overall Guidance ##### [810-954-15-1](https://asc.understandingaccounting.org/asc/810/954/#810-954-15-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:32:47.021Z to 2026-09-10T01:32:47.021Z Record version: sha256:80dd1a239101b662131a47a307fba0c0b611f38d11262e3f1d9dd1b5868854e1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section 954-10-15. #### Entities ##### [810-954-15-2](https://asc.understandingaccounting.org/asc/810/954/#810-954-15-2) Pending content: no Source downloaded (UTC): 2026-09-10T01:32:47.021Z to 2026-09-10T01:32:47.021Z Record version: sha256:f83ca826991034eb4f00566514ef78f7d5f2505833d4d2f7583596836a7d6f01 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If the reporting entity is an investor-owned health care entity, this Subtopic provides consolidation guidance for reporting relationships with other entities in addition to the guidance in the following locations: 1. a Pursuant to paragraph [810-10-15-3(a)](https://asc.understandingaccounting.org/asc/810/10/#810-10-15-3), if an investor-owned health care entity has an interest in an entity, it must determine whether that entity is within the scope of the Variable Interest Entities Subsections of Subtopic 810-10 pursuant to paragraph [810-10-15-14](https://asc.understandingaccounting.org/asc/810/10/#810-10-15-14). If that entity is within the scope of the Variable Interest Entities Subsections, the investor-owned health care entity shall first apply the guidance in those Subsections. Paragraph [810-10-15-17](https://asc.understandingaccounting.org/asc/810/10/#810-10-15-17) provides specific exceptions to applying the Variable Interest Entities Subsections. 2. b Pursuant to paragraph [810-10-15-3(b)](https://asc.understandingaccounting.org/asc/810/10/#810-10-15-3), if the investor-owned health care entity has an interest in an entity that is not within the scope of the Variable Interest Entities Subsections of Subtopic 810-10 and is not within the scope of the Subsections mentioned in paragraph [810-10-15-3(c)](https://asc.understandingaccounting.org/asc/810/10/#810-10-15-3), it shall use only the guidance in the General Subsections of Subtopic 810-10 to determine whether that interest constitutes a controlling financial interest. 3. c Pursuant to paragraph [810-10-15-3(c)](https://asc.understandingaccounting.org/asc/810/10/#810-10-15-3), if the investor-owned health care entity has a contractual management relationship with another entity (for example, a physician practice) and that other entity is not within the scope of the Variable Interest Entities Subsections of Subtopic 810-10, it shall use the guidance in the Consolidation of Entities Controlled by Contract Subsections of Subtopic 810-10 to determine whether the arrangement constitutes a controlling financial interest. 4. d [Subparagraph superseded by Accounting Standards Update No. 2015-02](https://asc.understandingaccounting.org/updates/asu-2015-02/). 5. e Pursuant to Section 810-30-15, if the investor-owned health care entity is a sponsor in a research and development arrangement, it shall apply the guidance in Subtopic 810-30. ##### [810-954-15-3](https://asc.understandingaccounting.org/asc/810/954/#810-954-15-3) Pending content: yes Source downloaded (UTC): 2026-09-10T01:32:47.021Z to 2026-09-10T01:32:47.021Z Record version: sha256:82ac7da2241853dd2163165debe8a0c531ee026995013af1e12b32abaf8c8030 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If the reporting entity is a not-for-profit business-oriented health care entity, this Subtopic provides consolidation guidance for reporting relationships with other entities in addition to the guidance in the following locations: 1. a Pursuant to paragraph [810-10-15-17](https://asc.understandingaccounting.org/asc/810/10/#810-10-15-17), not-for-profit business-oriented health care entities are not subject to the Variable Interest Entities Subsections of Subtopic 810-10 unless the not-for-profit entity is used by a business entity in a manner similar to a VIE in an effort to circumvent the provisions of those Subsections. 2. b If the not-for-profit, business-oriented health care entity has an investment in a for-profit entity, it shall use the guidance in the General Subsections of Subtopic 810-10 to determine whether that interest constitutes a controlling financial interest. 3. c If the not-for-profit, business-oriented health care entity has a contractual management relationship with another entity (for example, a physician practice), it shall use the guidance in the Consolidation of Entities Controlled by Contract Subsections of Subtopic 810-10 to determine whether the arrangement constitutes a controlling financial interest. 4. d [Subparagraph superseded by Accounting Standards Update No. 2015-02](https://asc.understandingaccounting.org/updates/asu-2015-02/). 5. dd If the not-for-profit, business-oriented health care entity is the general partner or limited partner of a for-profit limited partnership or similar [legal entity](https://asc.understandingaccounting.org/glossary/l/#legal-entity "Any legal structure used to conduct activities or to hold assets. Some examples of such structures are corporations, partnerships, limited liability companies, grantor trusts, and other trusts.") (such as a limited liability company that has governing provisions that are the functional equivalent of a limited partnership), it shall apply the guidance in paragraphs [958-810-25-11 through 25-29](https://asc.understandingaccounting.org/asc/810/958/#810-958-25-11) and [958-810-55-16A through 55-16I](https://asc.understandingaccounting.org/asc/810/958/#810-958-55-16A) . 6. e If the not-for-profit, business-oriented health care entity is a sponsor in a research and development arrangement, it shall apply the guidance in Subtopic 810-30. 7. f If the not-for-profit, business-oriented health care entity has a relationship with another not-for-profit entity that involves [control](https://asc.understandingaccounting.org/glossary/c/#control "The direct or indirect ability to determine the direction of management and policies through ownership, contract, or otherwise."), an [economic interest](https://asc.understandingaccounting.org/glossary/e/#economic-interest "A not-for-profit entity's (NFP's) interest in another entity that exists if any of the following criteria are met: The other entity holds or utilizes significant resources that must be used for the purposes of the NFP, either directly or indirectly by producing income or providing services. The NFP is responsible for the liabilities of the other entity. See paragraph 958-810-55-6 for examples of economic interests."), or both, it shall apply the guidance in Subtopic 958-810. 8. g If the not-for-profit, business-oriented health care entity is engaged in leasing transactions with a special-purpose-entity (SPE) lessor, it shall consider whether it should consolidate the lessor in accordance with the guidance in paragraphs [958-810-25-8 through 25-10](https://asc.understandingaccounting.org/asc/810/958/#810-958-25-8) . 9. h Except where it elects to report such interests at fair value in accordance with the Fair Value Option Subsections of Subtopic 825-10, a not-for-profit, business-oriented health care entity that owns 50 percent or less of the common voting stock of an investee and can exercise significant influence over operating and financial policies shall apply the guidance in Subtopic 323-10. 10. i Except where it elects to report such interests at fair value in accordance with the Fair Value Option Subsections of Subtopic 825-10, a not-for-profit, business-oriented health care entity shall report noncontrolling interests in for-profit real estate partnerships, limited liability entities, and similar entities over which the reporting entity has more than a minor interest under the equity method in accordance with the guidance in Subtopic 970-323. A not-for-profit, business-oriented health care entity shall apply the guidance in paragraph [970-323-25-2](https://asc.understandingaccounting.org/asc/323/970/#323-970-25-2) to determine whether its interest in a for-profit partnership, limited liability entity, or similar entity is a controlling interest or a noncontrolling interest. A not-for-profit, business-oriented health care entity shall apply the guidance in paragraph [323-30-35-3](https://asc.understandingaccounting.org/asc/323/30/#323-30-35-3) to determine whether a limited liability entity should be viewed as similar to a partnership, as opposed to a corporation, for purposes of determining whether a noncontrolling interest in a limited liability entity or a similar entity should be accounted for in accordance with Subtopic 970-323 or Subtopic 323-10. Transition date:(P) December 16, 2026; (N) December 16, 2026Transition guidance: [105-10-65-10](https://asc.understandingaccounting.org/asc/105/10/#105-10-65-10)If the reporting entity is a not-for-profit business-oriented health care entity, this Subtopic provides consolidation guidance for reporting relationships with other entities in addition to the guidance in the following locations: 1. a Pursuant to paragraph [810-10-15-17](https://asc.understandingaccounting.org/asc/810/10/#810-10-15-17), not-for-profit business-oriented health care entities are not subject to the Variable Interest Entities Subsections of Subtopic 810-10 unless the not-for-profit entity is used by a business entity in a manner similar to a VIE in an effort to circumvent the provisions of those Subsections. 2. b If the not-for-profit, business-oriented health care entity has an investment in a for-profit entity (other than a limited partnership or similar [legal entity](https://asc.understandingaccounting.org/glossary/l/#legal-entity "Any legal structure used to conduct activities or to hold assets. Some examples of such structures are corporations, partnerships, limited liability companies, grantor trusts, and other trusts.") \[such as a limited liability company that has governing provisions that are the functional equivalent of a limited partnership\]), it shall use the guidance in the General Subsections of Subtopic 810-10 to determine whether that interest constitutes a controlling financial interest. 3. c If the not-for-profit, business-oriented health care entity has a contractual management relationship with another entity (for example, a physician practice), it shall use the guidance in the Consolidation of Entities Controlled by Contract Subsections of Subtopic 810-10 to determine whether the arrangement constitutes a controlling financial interest. 4. d [Subparagraph superseded by Accounting Standards Update No. 2015-02](https://asc.understandingaccounting.org/updates/asu-2015-02/). 5. dd If the not-for-profit, business-oriented health care entity is the general partner or limited partner of a for-profit limited partnership or similar legal entity (such as a limited liability company that has governing provisions that are the functional equivalent of a limited partnership), it shall apply the guidance in paragraphs [958-810-25-11 through 25-29](https://asc.understandingaccounting.org/asc/810/958/#810-958-25-11) and [958-810-55-16A through 55-16I](https://asc.understandingaccounting.org/asc/810/958/#810-958-55-16A) . 6. e If the not-for-profit, business-oriented health care entity is a sponsor in a research and development arrangement, it shall apply the guidance in Subtopic 810-30. 7. f If the not-for-profit, business-oriented health care entity has a relationship with another not-for-profit entity that involves [control](https://asc.understandingaccounting.org/glossary/c/#control "The direct or indirect ability to determine the direction of management and policies through ownership, contract, or otherwise."), an [economic interest](https://asc.understandingaccounting.org/glossary/e/#economic-interest "A not-for-profit entity's (NFP's) interest in another entity that exists if any of the following criteria are met: The other entity holds or utilizes significant resources that must be used for the purposes of the NFP, either directly or indirectly by producing income or providing services. The NFP is responsible for the liabilities of the other entity. See paragraph 958-810-55-6 for examples of economic interests."), or both, it shall apply the guidance in Subtopic 958-810. 8. g If the not-for-profit, business-oriented health care entity is engaged in leasing transactions with a special-purpose-entity (SPE) lessor, it shall consider whether it should consolidate the lessor in accordance with the guidance in paragraphs [958-810-25-8 through 25-10](https://asc.understandingaccounting.org/asc/810/958/#810-958-25-8) . 9. h Except where it elects to report such interests at fair value in accordance with the Fair Value Option Subsections of Subtopic 825-10, a not-for-profit, business-oriented health care entity that owns 50 percent or less of the common voting stock of an investee and can exercise significant influence over operating and financial policies shall apply the guidance in Subtopic 323-10. 10. i Except where it elects to report such interests at fair value in accordance with the Fair Value Option Subsections of Subtopic 825-10, a not-for-profit, business-oriented health care entity shall report noncontrolling interests in for-profit real estate partnerships, limited liability entities, and similar entities over which the reporting entity has more than a minor interest under the equity method in accordance with the guidance in Subtopic 970-323. A not-for-profit, business-oriented health care entity shall apply the guidance in paragraph [970-323-25-2](https://asc.understandingaccounting.org/asc/323/970/#323-970-25-2) to determine whether its interest in a for-profit partnership, limited liability entity, or similar entity is a controlling interest or a noncontrolling interest. A not-for-profit, business-oriented health care entity shall apply the guidance in paragraph [323-30-35-3](https://asc.understandingaccounting.org/asc/323/30/#323-30-35-3) to determine whether a limited liability entity should be viewed as similar to a partnership, as opposed to a corporation, for purposes of determining whether a noncontrolling interest in a limited liability entity or a similar entity should be accounted for in accordance with Subtopic 970-323 or Subtopic 323-10. Source downloaded (UTC): 2026-09-10T01:32:52.542Z to 2026-09-10T01:32:52.542Z Record version: sha256:a1a3a0768b37dd50753e8e182c400120031d9ceaa6dabc5872664d91e43646c4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 810-954-45: 45 Other Presentation Matters [Read section](https://asc.understandingaccounting.org/asc/810/954/#45-other-presentation-matters) SEC content: no ##### [810-954-45-1](https://asc.understandingaccounting.org/asc/810/954/#810-954-45-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:32:52.542Z to 2026-09-10T01:32:52.542Z Record version: sha256:c5e2fca02ccd4d61659b686f1de7250442ebe89a8ddcd91ba4a9df07b9d8d52d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Whether the financial statements of a reporting health care entity and those of one or more other for-profit entities or not-for-profit entities (NFPs) shall be consolidated, whether those other entities shall be reported using the equity method, and the extent of disclosure that is be required (if any) if consolidated financial statements are not presented, shall be based on the nature of the relationship between the entities. See paragraphs [954-810-15-2 through 15-3](https://asc.understandingaccounting.org/asc/810/954/#810-954-15-2) . ##### [810-954-45-2](https://asc.understandingaccounting.org/asc/810/954/#810-954-45-2) Pending content: no Source downloaded (UTC): 2026-09-10T01:32:52.542Z to 2026-09-10T01:32:52.542Z Record version: sha256:3ccaa0711c13e20ee90135faef28b4464cfbc0a2b8e688a819bc13daa67681a0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph [958-810-25-2A](https://asc.understandingaccounting.org/asc/810/958/#810-958-25-2A) explains that, in some situations, certain actions require approval by a supermajority vote of the board. That paragraph states that such voting requirements might overcome the presumption of control by the owner or holder of a majority voting interest. (For related implementation guidance, see paragraph [958-810-55-4A](https://asc.understandingaccounting.org/asc/810/958/#810-958-55-4A).) Pursuant to paragraph [810-10-15-17(a)](https://asc.understandingaccounting.org/asc/810/10/#810-10-15-17) a not-for-profit, business-oriented health care entity is not subject to the Variable Interest Entities Subsections of Subtopic 810-10, except that it may be a related party for purposes of applying paragraphs [810-10-25-42 through 25-44](https://asc.understandingaccounting.org/asc/810/10/#810-10-25-42) . Also, if a not-for-profit, business-oriented health care entity is used by business entities in a manner similar to a variable interest entity (VIE) in an effort to circumvent the provisions of the Variable Interest Entities Subsections of Subtopic 810-10, that not-for-profit entity shall be subject to the Variable Interest Entities Subsections of that Subtopic. ##### [810-954-45-3](https://asc.understandingaccounting.org/asc/810/954/#810-954-45-3) Pending content: no Source downloaded (UTC): 2026-09-10T01:32:52.542Z to 2026-09-10T01:32:52.542Z Record version: sha256:f368cca33ae05efc10f70a5f12dff114eb7344f7c8e86a20a04e0ba3d6e636bf Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph not used](https://asc.understandingaccounting.org/updates/page-1833002/). ##### [810-954-45-3A](https://asc.understandingaccounting.org/asc/810/954/#810-954-45-3A) Pending content: no Source downloaded (UTC): 2026-09-10T01:32:52.542Z to 2026-09-10T01:32:52.542Z Record version: sha256:d4c9a4c6feab7f5aba98fdac21fe40314ba796c1229a79fd5642864246e2cd89 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A parent corporation typically owns stock in a for-profit entity, whereas a sole corporate member holds membership rights in a not-for-profit entity. Sole corporate membership in a not-for-profit entity, like ownership of a majority voting interest in a for-profit entity, shall be considered a controlling financial interest, unless control does not rest with the sole corporate member (for instance, if the other \[membership\] entity is in bankruptcy or if other legal or contractual limitations are so severe that control does not rest with the sole corporate member). ##### [810-954-45-3B](https://asc.understandingaccounting.org/asc/810/954/#810-954-45-3B) Pending content: no Source downloaded (UTC): 2026-09-10T01:32:52.542Z to 2026-09-10T01:32:52.542Z Record version: sha256:fc80a1e929e21719dc21834ba3ebbb56dbb4dd4ab88e69290e516f8388135f6a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. When consolidated financial statements are required or permitted by Section 958-810-25, a noncontrolling interest shall be provided if such interest is represented by an economic interest whereby the noncontrolling interest would share in the operating results or residual interest upon dissolution. (See presentation and disclosure requirements in Sections 958-810-45 and 958-810-50, respectively.) ##### [810-954-45-3C](https://asc.understandingaccounting.org/asc/810/954/#810-954-45-3C) Pending content: no Source downloaded (UTC): 2026-09-10T01:32:52.542Z to 2026-09-10T01:32:52.542Z Record version: sha256:7c7c898e3f3f75eef6c8c4ef7b79ea02b167b004da92c936f277b36c3693c483 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Not-for-profit, business-oriented health care entities shall not report an investment in an entity at fair value, as described in paragraph [958-325-35-6](https://asc.understandingaccounting.org/asc/325/958/#325-958-35-6), if that entity is required to be consolidated. #### Medical Malpractice Claims ##### [810-954-45-4](https://asc.understandingaccounting.org/asc/810/954/#810-954-45-4) Pending content: no Source downloaded (UTC): 2026-09-10T01:32:52.542Z to 2026-09-10T01:32:52.542Z Record version: sha256:33f2c6d13868426d942d7cbe51eb6d6843444f4d8c898838bacccc60c25bca26 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In general, a trust fund, whether legally revocable or irrevocable, shall be included in the financial statements of the health care entity. A portion of the fund equal to the amount of assets expected to be liquidated to pay malpractice claims classified as current liabilities shall be classified as a current asset; the balance of the fund, if any, shall be classified as a noncurrent asset. Revenues and administrative expenses of the trust fund are included in the statement of operations. In some circumstances, the foregoing may not be possible (for example, if a common trust fund exists for a group of health care entities; if the health care entity is part of a common municipality risk-financing internal service fund; or if the legal, regulatory, or indenture restrictions prevent the inclusion of a trust fund in a health care entity's financial statements). Source downloaded (UTC): 2026-09-10T01:32:54.976Z to 2026-09-10T01:32:54.976Z Record version: sha256:7226185c2b70e236bc29a83046ba73488d597cc56f5b6d2c5c05be344ee0fee8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 810-954-50: 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/810/954/#50-disclosure) SEC content: no #### Medical Malpractice Trust Fund ##### [810-954-50-1](https://asc.understandingaccounting.org/asc/810/954/#810-954-50-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:32:54.976Z to 2026-09-10T01:32:54.976Z Record version: sha256:632548f70ad6dab08331a0f5a06af21512049335a033cdf9e566b81a3ef2a609 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The existence of the trust fund and whether it is irrevocable shall be disclosed in the financial statements. #### Noncontrolling Interests ##### [810-954-50-2](https://asc.understandingaccounting.org/asc/810/954/#810-954-50-2) Pending content: no Source downloaded (UTC): 2026-09-10T01:32:54.976Z to 2026-09-10T01:32:54.976Z Record version: sha256:790a46c567db0df91c64f3d91b2155b52be275b75f81523ca9dd910830dee592 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A not-for-profit, business-oriented health care entity shall include the performance indicator in the schedule required by paragraphs [958-810-50-4 through 50-5](https://asc.understandingaccounting.org/asc/810/958/#810-958-50-4) . Paragraph [958-810-55-25](https://asc.understandingaccounting.org/asc/810/958/#810-958-55-25) illustrates the required disclosure using a reconciling schedule in notes to the consolidated financial statements. Source downloaded (UTC): 2026-09-10T01:32:56.860Z to 2026-09-10T01:32:56.860Z Record version: sha256:091160cedf5931a3ecc8532dbec56706394804fd5d31610a3d3f550e0488b3b0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 810-954-60: 60 Relationships [Read section](https://asc.understandingaccounting.org/asc/810/954/#60-relationships) SEC content: no #### Consolidations ##### [810-954-60-1](https://asc.understandingaccounting.org/asc/810/954/#810-954-60-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:32:56.860Z to 2026-09-10T01:32:56.860Z Record version: sha256:f00d0f33484a4856ebafa05bf4a95677a60c7e91295ffec29da0c34459c3da57 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For contractual arrangements between entities that are in business to practice and dispense medicine (physician practices) and entities that are in business to manage the operations of those physician practices (physician practice management entities), see the Consolidation of Entities Controlled by Contract Subsections of Subtopic 810-10.