Health Care Entities Revenue Recognition Task Force 


    AICPA Revenue Recognition Task Forces are charged with developing revenue recognition implementation issues that will provide helpful hints and illustrative examples for how to apply the new Revenue Recognition Standard.

    Task Force Members:

    • Kimberly McKay, BKD, LLP (Chair)
    • Jay Adkisson, Wipfli LLP
    • Mike Breen, KPMG LLP
    • Cline Comer, CliftonLarsonAllen LLP (retired)
    • Gordon Edwards, PeaceHealth
    • Martha Garner, PricewaterhouseCoopers LLP
    • Nanda Gopal, BDO USA, LLP
    • John Hawryluk, KPMG LLP
    • Chuck Heimerdinger, Ernst & Young LLP
    • Brian Murray, Crowe Horwath LLP
    • Susan Paulsen, Paulsen, Megaard & Co. PS
    • Barb Potts, Ascension Health Alliance
    • Chris Pritchard, Moss Adams LLP
    • Mark Ross, Baker Tilly Virchow Krause, LLC
    • Mike Sorelle, Grant Thornton LLP
    • Deborah Stokes, Kaiser Foundation Health Plan
    • Don Street, HCA Holdings, Inc.
    • Karen Van Compernolle, Deloitte LLP
    • Dan Vandenberghe, McGladrey LLP
    Staff Contact: Andy Mrakovcic, amrakovcic@aicpa.org

    IDENTIFIED REVENUE RECOGNITION IMPLEMENTATION ISSUES

    Below is a list of potential revenue recognition implementation issues identified by the Health Care Entities Revenue Recognition Task Force. The list will be updated as the task force continues it discussions. Full revenue recognition implementation issues will be posted below for informal comments after review by the AICPA Financial Reporting Executive Committee (FinREC).

    Issue # Description of Implementation Issue
    1 Consideration of the following regarding self-pay balances:
    • Application of step 1 in determining if there is a contract
    • Application of step 3 in determining the transaction price considering allowances/discounts and implicit price concessions
    • Application of the portfolio approach (including CCRC contracts)
    2 CCRC Revenue Stream
    • Identifying the performance obligation(s) and recognizing the monthly/periodic fees and nonrefundable entrance fees under the different types of contracts for continuing care retirement communities
    • Identifying the performance obligation(s) and recognizing the performance obligation(s) to provide future services and use of facilities
    • Significant Financing Component - CCRC Contracts
    3 Scope of prepaid health services as it relates to revenue recognition and the application of FASB ASC 954 vs. ASC 944
    4 Disclosure requirements for health care entities
    5 Contract acquisition costs for prepaid health services and CCRC entrance fees
    6 Determination (estimation) of transaction price (expected value vs. most likely) as it relates to third party estimates


    FEEDBACK REQUESTED

    Draft Revenue Recognition Implementation Issues included for informal comment, when available, will be listed below.

    Respondents should submit any comments including the implementation issue number to revreccomments@aicpa.org by the dates noted below:

    Issue # Comment Due Date


    The Health Care Entities Revenue Recognition Task Force and Health Care Entities Expert Panel recommend the following AICPA products for current revenue recognition issues:



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