In May 2014, after years of work between the Financial Accounting Standards Board (FASB), the International Accounting Standards Board (IASB), and other parties, FASB created a global, consistent revenue recognition model. With a single comprehensive recognition model in place, we can begin to explore its effects on the health care industry. Preliminary implementation guidance is subject to final approval, but it isn’t too early to explore some of the more complex considerations around self-pay and third party payors.
CliftonLarsonAllen (CLA)'s presenters discussed the potential impact of this new standard, including changes from prior guidance, and problematic and time-consuming issues. We also walked through examples of where we think the standard will move the industry.