Help for Health Care Entities’ Financial Reporting Requirements

For Health Care Entities structured as a not-for-profit organization, the AICPA has recently released guidance for implementing FASB Accounting Standards Update (ASU) 2016-14, Presentation of Financial Statements of Not-for-Profit Entities. The ASU 2016-14 significantly changes the way all not-for-profit organizations classify net assets and prepare financial statements and is required to be implemented for fiscal years beginning after December 15, 2017.

The AICPA’s Health Care Expert Panel has prepared three non-authoritative ‘issues analyses’ that are intended to provide helpful information for health care entities as they prepare for implementation of the new standard, as follows:

• Natural and Functional Class Presentation

• Liquidity and Availability

• Net Asset Presentation

For more information or assistance with implementing the ASU 2016-14, please contact Linda Marie Pearson, CPA, CFE, at 401-752-0566.