Debt Presentation Rules Change for Healthcare Companies
Hospitals, clinics and other healthcare organizations will calculate debt much differently under the new revenue rules put forth by the Financial Accounting Standards Board (“FASB”). Under the new rules, which public organizations have to comply with for fiscal years beginning after December 15, 2017, discounts that healthcare organizations regularly give for procedures will no longer be considered bad debt. Instead, total revenues will include an adjustment for the amount the organization doesn’t expect to collect. For example, if a hospital charges $1,000 for a procedure but agrees to take $400 for the service from an uninsured patient, under the. Read More.
AICPA Committee Issues 20 Working Drafts for Implementing Revenue Standard
Twenty working drafts have been created to help companies implement Accounting Standards Update No. 2014-09, Revenue From Contracts With Customers. Issued by the American Institute of Certified Public Accountants’ Financial Reporting Executive Committee, the draft implementation guides cover eight industries with respect to airlines, healthcare businesses, energy companies, and telecommunications. The working drafts are as follows: Working Draft: Airlines Revenue Recognition Implementation Issue #2-5A: Timing and Classification of Commissions in Interline Transactions Working Draft: Airlines Revenue Recognition Implementation Issue #2-6G: Changes in the Volume of Mileage Credits Under a Cobranded Credit Card Arrangement Working Draft: Asset Management Revenue Recognition Implementation. Read More.
Topics: AICPA, AICPA Audit and Accounting Guide, AICPA Draft Implementation Guide, AICPA Financial Reporting Executive Committee, Airlines, Energy, healthcare, Revenue from Contracts with Customers (Topic 606), Revenue Recognition, Telecommunications, Working Drafts