Quality Control Manager Kathryn Fletcher authored an article entitled, “New Accounting Pronouncements Will Affect Healthcare Financial Reporting,” that appeared in Executive Insight on May 26, 2014. In the article, Fletcher discusses the various Financial Accounting Standards Board (FASB) and Governmental Accounting Standards Board (GASB) standards that will be effective in the coming months.
FASB, as of April 2014, has issued eight Accounting Standards Updates (ASU) to the FASB Codification. In addition to these, there are past accounting pronouncements that are now becoming effective that healthcare executives should be considering for adoption.
Introduced in October 2012, FASB ASU 2012-05 Statement of Cash Flows (Topic 230)-Not-for-Profit Entities was issues to provide consistency among not for profits regarding the classification, in the statement of cash flows, of cash receipts from the sale of certain donated financial assets that upon receipt were converted nearly immediately into cash.
The Governmental Accounting Standards Board (GASB) has also released several standards that will impact financial reporting for fiscal years ending in 2014. The article gives a brief summary of three of these upcoming changes that healthcare executives need to be evaluating: GASB No. 67 Financial Reporting for Pension Plans, GASB No. 68 Accounting and Financial Reporting for Pensions, and GASB No. 70 Accounting and Financial Reporting for Nonexchange Financial Guarantees.
For more information on the new accounting standards affecting healthcare financial reporting, please contact Kathryn Fletcher at kfletcher@draffin-tucker.com or (404) 220-8494.