New FASB standard addresses revenue recognition considerations

Healthc Financ Manage. 2015 Dec;69(12):72-8.

Abstract

Healthcare organizations are expected to apply the following steps in revenue recognition under the new standard issued in May 2014 by the Financial Accounting Standards Board: Identify the customer contract. Identify the performance obligations in the contract. Determine the transaction price. Allocate the transaction price to the performance obligations in the contract. Recognize revenue when--or in some circumstances, as--the entity satisfies the performance obligation.

MeSH terms

  • Accounting / standards*
  • Contracts / economics*
  • Economics, Hospital*
  • United States