New Accounting Standards: Revenue Recognition and the Not-For-Profit Reporting Standards

Two new accounting standards will begin affecting CHCs beginning with December 31, 2018 fiscal year-end. The first is a not-for-profit accounting standard for financial reporting which represents the largest change to not-for-profit financial reporting in 20 years. FASB’s goal is to improve the usefulness of information provided to not-for-profit financial statement users by eliminating diversity in practice, enhancing financial performance comparability, and increasing transparency around financial resource availability. BKD will examine the significant changes, tips to begin preparing, and example changes to the financial statements and footnotes. The second standard is a revenue recognition standard affecting all industries including CHCs. BKD will share the basic concepts of this new standard and provide an overview of how they will affect your CHC. Once you understand the basic elements of these new standards you will be better prepared to establish a plan to implement them.