sole corporate membership

Broad Transactions2

1. 810-954Health Care Entities810 Consolidation

   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.

2. 810-958Not-for-Profit Entities810 Consolidation

   This subtopic governs when a not-for-profit entity (NFP) must, may, or may not consolidate another entity. Control plus an economic interest is the organizing principle: a majority voting interest or sole corporate membership in another NFP requires consolidation; control through a majority voting interest in the other NFP's board plus an economic interest also requires consolidation; control by other means (e.g., contract) plus an economic interest permits but does not require consolidation; and control or an economic interest alone precludes consolidation. It also covers consolidation of special-purpose-entity lessors, consolidation of for-profit limited partnerships by NFP general or limited partners, and presentation and disclosure of noncontrolling interests.