# ASC 815-954-25: Derivatives and Hedging — Health Care Entities — 25 Recognition

Source: FASB Accounting Standards Codification, Basic View

[Read online](https://asc.understandingaccounting.org/asc/815/954/#25-recognition)

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## ASC 815-954-25: 25 Recognition

[Read section](https://asc.understandingaccounting.org/asc/815/954/#25-recognition)

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##### [815-954-25-1](https://asc.understandingaccounting.org/asc/815/954/#815-954-25-1)

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Not-for-profit, business-oriented health care entities do not frequently enter into foreign currency hedges. Therefore, this guidance focuses on matters pertaining to fair value and cash flow hedges.

##### [815-954-25-2](https://asc.understandingaccounting.org/asc/815/954/#815-954-25-2)

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Except as provided in paragraph [954-815-50-1](https://asc.understandingaccounting.org/asc/815/954/#815-954-50-1), not-for-profit health care entities shall apply the provisions of Topic 815 (including the provisions pertaining to cash flow hedge accounting) in the same manner as for-profit entities. That is, the gain or loss items that affect a for-profit entity's income from continuing operations similarly shall affect the not-for-profit health care entity's [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."), and the gain or loss items that are excluded from a for-profit entity's income from continuing operations (such as items reported in [other comprehensive income](https://asc.understandingaccounting.org/glossary/o/#other-comprehensive-income "Revenues, expenses, gains, and losses that under generally accepted accounting principles (GAAP) are included in comprehensive income but excluded from net income.")) similarly shall be excluded from the performance indicator by the not-for-profit health care entity.