Healthcare finance professionals whose work may be affected by governmental financial reporting standards have an opportunity to provide input to assist the Financial Accounting Foundation (FAF) in assessing the effectiveness of capital asset impairment and insurance recovery reporting by governmental healthcare entities. 

The FAF, which is the oversight organization of the Governmental Accounting Standards Board (GASB), is sponsoring an important research study to assess the effectiveness of GASB Statement No. 42, Accounting and Financial Reporting for Impairment of Capital Assets and for Insurance Recoveries.

HFMA members should participate in this survey.

Issued in 2003, GASB Statement 42 establishes measurement guidance for capital asset impairments and requires governmental healthcare entities to report the effects of those impairments when they occur. It addresses the capital asset effects of events such as floods, fires, quakes, permanent damage from deferred maintenance, changes in use of assets, and obsolescence. It also provides uniform reporting guidance for insurance recoveries.

The FAF has commissioned Rockbridge Associates, Inc., an independent research firm, to conduct the online survey, which requires approximately 15 to 20 minutes to complete. All answers shared by participants are to be kept strictly anonymous. 

The survey must be completed by Dec. 6, 2013.

The first question in the survey is “Which best describes the entity you work for/represent?” Selecting “other” at this point will prompt a follow-up question that allows participants to choose whether to take the survey from the perspective of a preparer, an auditor, or other consultant, or from the perspective of a user of financial statement information. 

A Word version can also be downloaded.

Many finance leaders and others are likely to receive the survey invitation directly from the survey firm. However you receive the invitation, I strongly encourage you to complete the survey, and to forward it to others in your organization who might like to participate. 

Questions about the survey can be sent to Wes Galloway of the FAF’s post-implementation review team at, or (203) 956-5272. 

Healthcare finance leaders should seize this opportunity to make their voices heard.  

Publication Date: Friday, November 22, 2013