New financial statement reporting requirements for healthcare entities and insurers

Since 2010, the Financial Accounting Standards Board issued several Accounting Standards Updates [ASUs] and other Authoritative Standards that affect Health Care Entities and Insurers, requiring them to more consistently account for and disclose their reporting of charitable and other costs. Also, in light of the main portions of Obama Care becoming effective in 2014, the FASB required such entities to more consistently and broadly disclose how they account for their bad debts, especially since the new law will limit such payments in the future. This article summarizes the provisions of the new Standards and provides examples of their application, in order to help health care entities and insurers understand the new provisions and implications.