AICPA Issues Working Draft of Audit and Accounting Guide Health Care Entities

Published on: 08 Apr 2011

Yesterday, the AICPA issued for comment a working draft that would revise its Audit and Accounting Guide Health Care Entities. Originally issued in 1996, the guide provides nonauthoritative guidance to assist in the preparation and audits of financial statements of health care entities. The working draft includes a number of enhancements to the original guide, including expanded discussions on (1) the financial accounting and reporting for managed care services and continuing care retirement communities and (2) other topics related to the health care industry (e.g., medical malpractice claims, patient receivables and revenue recognition, and the reporting entity and related entities). It also contains the following five new chapters:

  1. Derivatives.
  2. Municipal Bond Financing.
  3. Contributions Received and Made.
  4. Unique Financial Statement Considerations for Not-for-Profit Health Care Entities.
  5. Unique Considerations of State and Local Governmental Health Care Entities.

Comments on the working draft are due by June 6, 2011.

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