Almost all nursing home residents need some physical assistance, otherwise, why would they reside in a nursing home. In addition, most are at risk of further physical decline. The amount of assistance needed and the risk of decline vary from resident to resident. We know that a wide range of physical, neurological, and psychological conditions and cognitive factors can adversely impact physical function and that dependence on others for ADL assistance can lead to feelings of helplessness, isolation, diminished self-worth and loss of control over one's destiny. As a residents inactivity increases, the risk for complications such as muscle wasting, falls, impairment of skin integrity and depression, increases also. The MDS 3.0 is a comprehensive assessment tool that gathers information, drives resident care plans and facility reimbursement for care provided. The items in Section G0110 and G0120 assess the need for assistance with activities of daily living (ADLs). Of the 11 ADLs assessed in this area, four are considered to be late-loss ADLs. These are areas in which it is thought that a resident will retain their function in the longest. These areas are Bed Mobility, Transfers, Eating and Toilet Use. These four late-loss ADLs play a significant role in reimbursement for care provided. Therefore, it is critical that the direct care staff and MDS Assessors/Coordinators have a solid understanding of the key definitions and terminology associated with the items in Section G0110 and G0120 Activities of Daily Living, so that documentation in the area of ADLs is an accurate reflection of resident self-performance and amount of ADL support provided on a daily basis. MDS Nurses must also understand how to apply the Rule of 3 methodology in order to understand how Section G0110 and G0120 should be coded appropriately based on the guidance of the RAI Manual. We will explore ADL Coding for MDS 3.0 in this learning activity.