Healthcare Financial Reporting News
HFMA members urged to evaluate and reply to prospective new GASB statement
The statement would have implications for how supplemental payment programs and other revenues from patient services are reflected in financial statements.
Published
5 hours ago
HFMA’s Principles and Practices Board encourages healthcare providers who follow governmental accounting standards to carefully evaluate and provide feedback on GASB Statement No. 103, particularly as it relates to the classification and treatment of subsidies.
The Governmental Accounting Standards Board (GASB) has issued proposed implementation guidance addressing the application of subsidy-related guidance. The proposed approach introduces significant interpretive and operational implications for how patient-service-related revenues, especially supplemental payment programs, are reflected in financial statements.
Given the complexity and variability of these arrangements, it is critical that the GASB fully understands the real-world mechanics and economic substance underlying these transactions. Active engagement from providers will help ensure that the final standard promotes consistency, aligns with industry practice, and results in financial reporting that is both practical to implement and meaningful to stakeholders.
HFMA’s Principles and Practices (P&P) Board is developing a comment letter and will be meeting with the GASB. In addition, to help in your comment letter development, the P&P Board has crafted an illustrative draft to frame your submission as needed.
Comments to the GASB are due by April 27.
