A Principles and Practices Board Issue Analysis
This issue analysis provides some clarity to the healthcare industry on certain accounting and reporting issues resulting from incentive payments under the Medicare program for the meaningful use of electronic health record (EHR) technology. The issue analysis includes:
- An overview of the two accounting models for EHR payments: the contingency model and the IAS 20 grant accounting model
- A Q&A section discussing application of the IAS 20 grant accounting model to EHR incentive payments
- An example demonstrating accounting for grant income recognition for a Year 2 EHR incentive payment
Also included in the issue analysis is background information on the Medicare EHR incentive payment program.