On May 28, 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers. The standard will eliminate recognition guidance under current U.S. Generally Accepted Accounting Standards, and replace it with a principles-based approach for determining revenue recognition.
In a previous white paper, we addressed general principles, likely implementation issues and the implementation dates of ASU 2014-09. This article addresses certain issues specific to the health care industry.
The American Institute of Certified Public Accountants (AICPA) has formed sixteen industry task forces to develop a guide that will provide direction and illustrative examples when applying ASU 2014-09. Below is a list of potential revenue recognition implementation issues identified by the FASB and/or the Health Care Industry Task Force as of the date of this article. The list contains the status of each implementation issue, and will be updated as the issues make their way through the due diligence process. This process includes a thorough review by the AICPA's Revenue Recognition Working Group (RRWG) and Financial Reporting Executive Committee (FinREC), as well as FASB's Transition Resource Group (TRG), where applicable.
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The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
