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Accounting and Finance Reporting Changes: What Your Healthcare Organization Needs to Know. Tyler Bernier, CPA August 16, 2013. Agenda. EHR Incentives RAC and Similar A ccruals Clarified Audit Standards FASB Update Bad debt expense and allowance disclosures Malpractice claims
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Tyler Bernier, CPA
August 16, 2013
HFMA Principles and Practices (P&P) Board Issue Analysis, “Accounting for RAC Audit Adjustments and Exposures”
ASU 2011-07 – “Presentation and Disclosure of Patient Service Revenue, Provision of Bad Debts and the Allowance for Doubtful Accounts for Certain Health Care Entities”
Affects HC entities that “recognize significant amounts of patient service revenue at the time services are rendered even though the entities do not assess a patient’s ability to pay.”
Effective for first annual period ending after December 15, 2012
Example Disclosure from Accounting Standards Update:
Total all payors
Operating and Total Margins
Days Cash on Hand
**Net Days in Accounts Receivable (depending on which net revenue is used for calculation)
ASU 2010-24 – “Health Care Entities (Topic 954) Presentation of Insurance Claims and Related Insurance Recoveries”
ASU 2010-28 – “Intangibles --- Goodwill and Other”
ASU 2011-08 – “Intangibles—Goodwill and Other (Topic 350) Testing Goodwill for Impairment”
ASU 2012-02 – “Intangibles – Goodwill and Other”
ASU 2010-28 – Goodwill Impairment
If goodwill has zero or negative carrying amounts, step 1 may be skipped as fair value is expected to exceed $0.
Entity is still required to complete Step 2 of impairment test if it is more likely than not that a goodwill impairment exists.
Effective – beginning after 12/15/11
ASU 2011-08 – Goodwill Impairment
ASU 2012-02 – Intangibles Impairment
Relates to indefinite-lived intangible assets, other than goodwill
Qualitative assessment of goodwill, similar to new goodwill analysis – more-likely-than-not
Effective - beginning after 9/15/12
ASU 2010-29 – “Business Combinations”
Expanded disclosure requirements for business combinations for public entities
Effective for first annual period beginning on or after December 15, 2010
ASU 2011-04 – “Fair Value Measurement”
Additional explanation of FV measurement and expanded disclosures
Effective for fiscal years beginning after December 15, 2011
ASU 2012-05 – “Statement of Cash Flows”
Donated financial assets should be reported as operating inflows or, if restricted, financing activities.
Effective for fiscal years beginning after June 15, 2013. Early adoption permitted.
ASU 2013-04 – “Liabilities”
Reporting and disclosure requirements in certain joint and several liability arrangements.
Effective for fiscal years beginning after December 15, 2013 (2014 for nonpublic). Early adoption allowed.
ASU 2013-06 – “Not-for-Profit Entities”
Related to contributed serviced from an affiliate organization.
Effective prospectively for periods beginning after June 15, 2014. Early adoption permitted.
GASB Statement No. 62 – “Codification of Accounting and Financial Reporting Guidance Contained in Pre-November 30, 1989 FASB and AICPA Pronouncements”
GASB Statement No. 61 – “The Financial Reporting Entity: Omnibus an amendment of GASB Statements no. 14 and no. 34”
GASB Statement No. 63 – “Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources and Net Position”
Effective for periods beginning after December 15, 2011
Statement of Net Position
Assets + Deferred Outflows – Liabilities – Deferred Inflows = Net Position
Assets + Deferred Outflows = Liabilities – Deferred Inflows + Fund Balance
**Only 2 identified in GASBS 63
Statement No. 65 – “Items Previously Reported as Assets and Liabilities”
Effective for periods beginning after December 15, 2012
Retroactive application by restating financial statements, if practical, for all periods presented
GASB Statement No. 64 – “Derivative Instruments: Application of Hedge Accounting Termination Provisions – an amendment to GASB Statement No. 53”
Effective for periods beginning after June 15, 2011
Objective: clarify whether an effective hedging relationship continues after the replacement of a swap counterparty
GASB Statement No. 67
2 Types of Leases
Tyler Bernier, CPA
Eide Bailly LLP