Healthcare: Cost Will Be Used as the Measurement Basis for Charity Care Under ASU 2010-23
1/05/2012
Healthcare organizations are currently required to disclose their policy for providing charity care and the level of charity care provided. Cost-basis or revenue-based methods are typically used to measure the amount of charity care.
In an effort to enhance comparability, in August 2010, the Financial Accounting Standards Board issued ASU 2010-23 which dictates that cost will be used as the single measurement basis for charity care. Cost is identified as the direct and indirect costs of providing charity care. A disclosure of the method used to identify or determine costs will need to be provided.
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For further information about how this will impact your reporting requirements, please contact your J.H. Cohn engagement partner at 877-704-3500.
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