# ASC 815-954: Derivatives and Hedging — Health Care Entities Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/815/954/) 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): 2026-09-10T01:40:48.280Z to 2026-09-10T01:41:05.239Z Record version: sha256:ce7fc766c3148fe769135c78f20194b349dbc44116d8575f78b600dc7144de58 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 815-954: Derivatives and Hedging — Health Care Entities ### Machine-generated study aids ```json { "summary": "ASC 815-954 tells not-for-profit, business-oriented health care entities how to apply derivative and hedge accounting. The core rule is parity with for-profit entities: items that would hit a for-profit's income from continuing operations must hit the NFP health care entity's performance indicator, and items excluded (e.g., amounts in other comprehensive income) must be excluded from the performance indicator. Because these entities need not present a separate equity component, the guidance substitutes tailored disclosures about the accumulated derivative gain or loss excluded from the performance indicator.", "key_points": [ "The Subtopic applies only to not-for-profit, business-oriented health care entities (815-954-15-2) and, given infrequent foreign currency hedging, focuses on fair value and cash flow hedges (815-954-25-1).", "Except as provided in paragraph 954-815-50-1, these entities apply all of Topic 815, including cash flow hedge accounting, in the same manner as for-profit entities (815-954-25-2).", "The performance indicator functions as the analogue of a for-profit entity's income from continuing operations: gains and losses affecting the latter affect the performance indicator, and those excluded from it (such as OCI items) are excluded from the performance indicator (815-954-25-2).", "Not being required to report a separate component of equity does not preclude comprehensive income reporting for qualifying gains and losses on cash flow and fair value hedges; for a fair value hedge, amounts excluded from the assessment of effectiveness and recognized in earnings under an amortization approach per 815-20-25-83A may be recorded in OCI (815-954-45-1).", "Accumulated other comprehensive income is inherently carried forward in the entity's net assets and need not be reported separately on the balance sheet (815-954-45-1).", "Although not subject to Subtopic 220-10, these entities must separately disclose the beginning and ending accumulated derivative gain or loss excluded from the performance indicator, the net change from current-period hedging transactions, and net reclassifications into the performance indicator, similar to 815-30-50-2 (815-954-50-1).", "Disclosures analogous to 815-30-50-1 through 50-3 and 815-35-50-2 are required, including anticipated reclassifications into the performance indicator; paragraph 815-10-50-4G addresses how other Topic 815 disclosures apply (815-954-50-1; 815-954-50-2)." ], "categories": [ "Derivatives and hedging", "Not-for-profit", "Disclosure", "Presentation" ], "audience_level": "advanced", "student_note": "The key exam point is the mapping: \"performance indicator\" for an NFP health care entity plays the role of \"income from continuing operations\" for a for-profit, so hedge accounting mechanics are unchanged. A common misunderstanding is assuming that because these entities escape Subtopic 220-10 and need not show a separate equity component, they can skip OCI-type tracking — in fact 815-954-50-1 still requires roll-forward disclosure of the accumulated derivative gain or loss excluded from the performance indicator.", "related_topics": [ "815-20", "815-30", "815-35", "954-815", "954-220", "220-10" ], "key_concepts": [ "performance indicator", "not-for-profit business-oriented health care entity", "cash flow hedge", "fair value hedge", "accumulated derivative gain or loss", "other comprehensive income", "reclassification into performance indicator", "amounts excluded from assessment of effectiveness" ] } ``` Source downloaded (UTC): 2026-09-10T01:40:48.280Z to 2026-09-10T01:40:48.280Z Record version: sha256:161364239a063d1d40c235435e3ee7ccb00805a79e3d36d1b36c68a02380ae0a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 815-954-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/815/954/#00-status) SEC content: no ##### [815-954-00-1](https://asc.understandingaccounting.org/asc/815/954/#815-954-00-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:40:48.280Z to 2026-09-10T01:40:48.280Z Record version: sha256:11f1df396c77386d4f8245b2dd7fc953ff654e7ab21c211ec17c09ae3d44f0b5 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
Comprehensive IncomeAddedMaintenance Update 2014-20 (PDF)09/29/2014
Other Comprehensive IncomeAddedMaintenance Update 2014-20 (PDF)09/29/2014
954-815-25-2AmendedMaintenance Update 2014-20 (PDF)09/29/2014
954-815-45-1AmendedAccounting Standards Update No. 2017-1208/28/2017
954-815-50-1AmendedMaintenance Update 2014-20 (PDF)09/29/2014
954-815-50-1AmendedAccounting Standards Update No. 2011-0506/16/2011
954-815-50-2AddedAccounting Standards Update No. 2012-0410/01/2012
Source downloaded (UTC): 2026-09-10T01:40:50.773Z to 2026-09-10T01:40:50.773Z Record version: sha256:0870b501e59d68b975f417c358db503bb49c73540fb985d6fe0cbfc2195161a1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 815-954-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/815/954/#05-overview-and-background) SEC content: no ##### [815-954-05-1](https://asc.understandingaccounting.org/asc/815/954/#815-954-05-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:40:50.773Z to 2026-09-10T01:40:50.773Z Record version: sha256:1889e003442fd6b54fa9f584e8040ad9f265bab7ba63319f3535ff95864ef242 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic provides guidance on accounting for derivative instruments and hedging activities for not-for-profit, business-oriented health care entities. Source downloaded (UTC): 2026-09-10T01:40:53.157Z to 2026-09-10T01:40:53.157Z Record version: sha256:e34c38438c362e37141115ccbb34343584b64edfcc675144d6eeb3df051d952a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 815-954-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/815/954/#15-scope-and-scope-exceptions) SEC content: no #### Overall Guidance ##### [815-954-15-1](https://asc.understandingaccounting.org/asc/815/954/#815-954-15-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:40:53.157Z to 2026-09-10T01:40:53.157Z Record version: sha256:d9143c62ab2f0580efb9b19c5324517172b157352268e6b3079cccd6f1b64f0d 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, with specific entity qualifications noted below. #### Entity ##### [815-954-15-2](https://asc.understandingaccounting.org/asc/815/954/#815-954-15-2) Pending content: no Source downloaded (UTC): 2026-09-10T01:40:53.157Z to 2026-09-10T01:40:53.157Z Record version: sha256:639a55ab1fc5ce874a9c57b5c6c5e9db165a41b3bda771ca8a1c8073e008c9d2 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. Source downloaded (UTC): 2026-09-10T01:40:58.420Z to 2026-09-10T01:40:58.420Z Record version: sha256:f1674c6af1c93ea08ea0171ce3ec893db35f27c56186def62124a79b359ac4ad Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 815-954-25: 25 Recognition [Read section](https://asc.understandingaccounting.org/asc/815/954/#25-recognition) SEC content: no ##### [815-954-25-1](https://asc.understandingaccounting.org/asc/815/954/#815-954-25-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:40:58.420Z to 2026-09-10T01:40:58.420Z Record version: sha256:7556883732f4b6c7662bf5f78f4af47a2388f69bc5b1bf6b89bfb5cbad2f938e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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) Pending content: no Source downloaded (UTC): 2026-09-10T01:40:58.420Z to 2026-09-10T01:40:58.420Z Record version: sha256:d0cde807bc530e90182111298658b4446c9dbc794f9c07e96759d2ee7922ddc7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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. Source downloaded (UTC): 2026-09-10T01:41:01.728Z to 2026-09-10T01:41:01.728Z Record version: sha256:3458504d4e2137d9616484b7287069e3e6213c5de7b18fb526fa63e5d20442c2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 815-954-45: 45 Other Presentation Matters [Read section](https://asc.understandingaccounting.org/asc/815/954/#45-other-presentation-matters) SEC content: no ##### [815-954-45-1](https://asc.understandingaccounting.org/asc/815/954/#815-954-45-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:41:01.728Z to 2026-09-10T01:41:01.728Z Record version: sha256:c3d5640165d9dae660e4ac7e7d82f33f34a3c6bd5dec7ec3ae704650f6006f60 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The absence of a requirement to report a separate component of equity in the balance sheet of a not-for-profit, business-oriented health care entity shall not preclude those entities from using comprehensive income reporting for qualifying gains and losses on cash flow and fair value hedges. For a fair value hedge, amounts may be recorded in other comprehensive income if amounts are excluded from the assessment of effectiveness and are recognized in earnings through an amortization approach in accordance with paragraph [815-20-25-83A](https://asc.understandingaccounting.org/asc/815/20/#815-20-25-83A). Although accumulated other comprehensive income will inherently be carried forward in a not-for-profit health care entity's net assets, there is no compelling need for it to be reported separately in the balance sheet. Source downloaded (UTC): 2026-09-10T01:41:05.239Z to 2026-09-10T01:41:05.239Z Record version: sha256:7172b1df529be1ee36a7b0e34a269a57348eae89bd481f19da110416f83ebb1f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 815-954-50: 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/815/954/#50-disclosure) SEC content: no ##### [815-954-50-1](https://asc.understandingaccounting.org/asc/815/954/#815-954-50-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:41:05.239Z to 2026-09-10T01:41:05.239Z Record version: sha256:e74868662fb85390e61fa169d9057e4e64e50cb35269f4694fe4830bdd953251 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph [815-30-50-2](https://asc.understandingaccounting.org/asc/815/30/#815-30-50-2) discusses requirements to report changes in the components of [comprehensive income](https://asc.understandingaccounting.org/glossary/c/#comprehensive-income "The change in equity (net assets) of a business entity during a period from transactions and other events and circumstances from nonowner sources. It includes all changes in equity during a period except those resulting from investments by owners and distributions to owners. Comprehensive income comprises both of the following:All components of net incomeAll components of other comprehensive income.") pursuant to paragraphs [220-10-45-14 through 45-14A](https://asc.understandingaccounting.org/asc/220/10/#220-10-45-14). Although not-for-profit, business-oriented health care entities are not subject to the requirements of Subtopic 220-10, this Subtopic requires those entities to separately disclose the beginning and ending accumulated derivative gain or loss that has been excluded from 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.") (see also paragraphs [954-220-45-5 through 45-8](https://asc.understandingaccounting.org/asc/220/954/#220-954-45-5) ), the related net change associated with current period hedging transactions, and the net amount of any reclassifications into the performance indicator in a manner similar to that described in paragraph [815-30-50-2](https://asc.understandingaccounting.org/asc/815/30/#815-30-50-2). Similarly, this Subtopic requires not-for-profit health care entities to provide disclosures that are analogous to those required by paragraphs [815-30-50-1 through 50-3](https://asc.understandingaccounting.org/asc/815/30/#815-30-50-1) and [815-35-50-2](https://asc.understandingaccounting.org/asc/815/35/#815-35-50-2) for for-profit entities, including the disclosure of anticipated reclassifications into the performance indicator of gains and losses that have been excluded from that measure and reported in accumulated derivative gain or loss as of the reporting date. ##### [815-954-50-2](https://asc.understandingaccounting.org/asc/815/954/#815-954-50-2) Pending content: no Source downloaded (UTC): 2026-09-10T01:41:05.239Z to 2026-09-10T01:41:05.239Z Record version: sha256:c95d77528b92ac7a46ab5f42eaa06a6023dcd02f85b3e6363b21f4295e82ca0a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph [815-10-50-4G](https://asc.understandingaccounting.org/asc/815/10/#815-10-50-4G) discusses how certain other disclosures required by Topic 815 should be applied by not-for-profit, business-oriented health care entities.