Healthcare: Preparing for revenue recognition
Implementation of the new revenue recognition standard is closer than it seems. The amount of work involved to switch to the new framework can take significant time, and public business entities (some institutions with public bonds) will be implementing early.
The new standard applies to all contracts with patients, and the variation in services provided and payment methodologies employed only add to the complexity of revenue recognition in healthcare.
Our guide includes key topics impacting revenue recognition in healthcare, including:
- Determining transaction prices for healthcare services
- Evaluating the existence of a contract for healthcare services to self-pay patients
- Identifying performance obligations across a range of contracts with patients
- Accounting for the costs of acquiring and fulfilling contracts
- Applying the portfolio approach to self-pay patients and third-party payors to recognize revenue
- Expanding financial statement disclosures about revenue from contracts
Access our Revenue recognition resource guide for healthcare to help you implement the new principles-based guidance.