# ASC 825-954: Financial Instruments — Health Care Entities

Source: FASB Accounting Standards Codification, Basic View

[Read online](https://asc.understandingaccounting.org/asc/825/954/)

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## ASC 825-954: Financial Instruments — Health Care Entities

### Machine-generated study aids

```json
{
  "summary": "This subtopic gives industry-specific guidance on financial instruments for not-for-profit, business-oriented health care entities. Its single substantive rule is a presentation rule: when such an entity elects the fair value option, the resulting unrealized gains and losses must be reported inside the performance indicator (or within discontinued operations, as appropriate) rather than outside it.",
  "key_points": [
    "The Subtopic applies only to not-for-profit, business-oriented health care entities (825-954-15-2), and otherwise follows the scope in Section 954-10-15 (825-954-15-1).",
    "Unrealized gains and losses on items for which the fair value option has been elected are reported within the performance indicator, or as part of discontinued operations if appropriate (825-954-45-1).",
    "Paragraph 825-10-15-7 is cross-referenced for further guidance on eligible items for the fair value option (825-954-45-1).",
    "The guidance is presentation-only; it does not change whether or how the fair value option may be elected under Subtopic 825-10."
  ],
  "categories": [
    "Financial instruments",
    "Presentation",
    "Industry-specific",
    "Not-for-profit"
  ],
  "audience_level": "intermediate",
  "student_note": "The performance indicator is the health care equivalent of income from continuing operations, and this rule keeps fair value option gains and losses inside it; a common mistake is assuming NFP health care entities can push these amounts below the performance indicator like other changes in net assets without donor restrictions.",
  "related_topics": [
    "825-10",
    "954-10",
    "954-225",
    "820",
    "958-320"
  ],
  "key_concepts": [
    "fair value option",
    "performance indicator",
    "unrealized gains and losses",
    "not-for-profit business-oriented health care entity",
    "discontinued operations",
    "income statement presentation"
  ]
}
```

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## ASC 825-954-05: 05 Overview and Background

[Read section](https://asc.understandingaccounting.org/asc/825/954/#05-overview-and-background)

SEC content: no

##### [825-954-05-1](https://asc.understandingaccounting.org/asc/825/954/#825-954-05-1)

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This Subtopic provides guidance on financial instruments for not-for-profit, business-oriented health care entities.

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## ASC 825-954-15: 15 Scope and Scope Exceptions

[Read section](https://asc.understandingaccounting.org/asc/825/954/#15-scope-and-scope-exceptions)

SEC content: no

#### Overall Guidance

##### [825-954-15-1](https://asc.understandingaccounting.org/asc/825/954/#825-954-15-1)

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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.

#### Entities

##### [825-954-15-2](https://asc.understandingaccounting.org/asc/825/954/#825-954-15-2)

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The guidance in this Subtopic applies only to not-for-profit, business-oriented health care entities.

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## ASC 825-954-45: 45 Other Presentation Matters

[Read section](https://asc.understandingaccounting.org/asc/825/954/#45-other-presentation-matters)

SEC content: no

##### [825-954-45-1](https://asc.understandingaccounting.org/asc/825/954/#825-954-45-1)

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Not-for-profit, business-oriented health care entities shall report unrealized gains and losses on items for which the fair value option has been elected 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.") or as a part of discontinued operations, as appropriate. See paragraph [825-10-15-7](https://asc.understandingaccounting.org/asc/825/10/#825-10-15-7) for further guidance.