As those entities in the health care industry generally have unique transactions and business models from other industries, there are certain set standards which each company must conform to whether a not-for-profit or for-profit model. Specifically, transactions called Contributions are discussed in depth.
Typical Health Care Entities Included in ASC 954
- Nursing Homes
- Medical Clinics
- Continuing Care Retirement Communities
- Health Maintenance Organizations
- Home Health Agencies
- Rehabilitation Facilities
- Items typically included in Other Comprehensive Income
- Extraordinary items
- Discontinued operations
- Cumulative effect of accounting changes
- Transactions with owners
Of course this is not a comprehensive listing, but should be used in order to gain the conceptual idea of the key performance indicator of the entity. For the most part, as Health Care entities are typically not for profits, they should be accounted for in accordance with the standards relevant for not for profit entities. which is FASB ASC 958.
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