What it is
A continuing care retirement community collects entrance fees up front. Part of the fee is refundable and is a liability. The nonrefundable part is deferred and recognized over the resident’s expected remaining life, and any termination releases the rest into revenue.
This workbook splits each resident’s fee, amortizes the nonrefundable portion on a straight-line basis between your year-end dates, handles terminations, and rolls the deferred revenue forward with a tie to the ledger.
When to use it
- At year end, to support deferred revenue and the refundable fee liability.
- When the expected life assumption is updated by an actuary.
- During a lender or bond covenant review that depends on entrance fee balances.
What’s inside
- Residents tab with 40 rows, refundable percentage and termination date
- Amortization to the current and prior year-end and revenue for the year
- Rollforward tab with opening, fees received, revenue and closing deferred revenue
- Four tie-outs to the ledger and between tabs
Standard cited
This template follows ASC 954. It is written in our own words, except for phrases the standard requires the document to contain, with [bracketed placeholders] for client details, amounts in USD and dates as MM/DD/YYYY. Check it against the current standard and your firm’s methodology before use.
Questions
Which part of the entrance fee is amortized?
The nonrefundable part. The refundable part is a liability to the resident and is not amortized.
What happens at termination?
The remaining deferred balance is recognized in revenue at the termination date. Any refund owed is tracked as a liability until it is paid.
What expected life should be used?
The one your accounting policy and actuarial support provide. It is an input for each resident, and a change is a change in estimate applied prospectively.
Related templates
- Audit Program: Senior Living and Continuing Care Retirement Community
- Deferred Revenue Rollforward and Ratable Recompute
- Disclosure Checklist: Revenue (ASC 606)
- Audit Program: Nonprofit Organization
Last updated 11/05/2026. All free templates.