hma presentation 3 8 - The Maine Chapter of HFMA provides ...€¦ · HFMA MAINE CHAPTER March 10,...
Transcript of hma presentation 3 8 - The Maine Chapter of HFMA provides ...€¦ · HFMA MAINE CHAPTER March 10,...
![Page 1: hma presentation 3 8 - The Maine Chapter of HFMA provides ...€¦ · HFMA MAINE CHAPTER March 10, 2016 Andrea J. Colfer, CPA David Kennedy, CPA. GAIN CONTROL AGENDA ... PRESENTATION](https://reader034.fdocuments.net/reader034/viewer/2022050217/5f630438b163d45920502eef/html5/thumbnails/1.jpg)
GAIN CONTROLGAIN CONTROL berrydunn.com
ACCOUNTING UPDATEHFMA MAINE CHAPTER
March 10, 2016
Andrea J. Colfer, CPADavid Kennedy, CPA
![Page 2: hma presentation 3 8 - The Maine Chapter of HFMA provides ...€¦ · HFMA MAINE CHAPTER March 10, 2016 Andrea J. Colfer, CPA David Kennedy, CPA. GAIN CONTROL AGENDA ... PRESENTATION](https://reader034.fdocuments.net/reader034/viewer/2022050217/5f630438b163d45920502eef/html5/thumbnails/2.jpg)
GAIN CONTROL
AGENDA
Revenue Recognition
Not-for-Profit Reporting Project
Financial Instruments
Leases
Reporting Discontinued Operations
Going Concern
What is next in the pipe line?
2
![Page 3: hma presentation 3 8 - The Maine Chapter of HFMA provides ...€¦ · HFMA MAINE CHAPTER March 10, 2016 Andrea J. Colfer, CPA David Kennedy, CPA. GAIN CONTROL AGENDA ... PRESENTATION](https://reader034.fdocuments.net/reader034/viewer/2022050217/5f630438b163d45920502eef/html5/thumbnails/3.jpg)
GAIN CONTROL 3
ACCOUNTING STANDARDS UPDATE (ASU) NO. 2014-09
REVENUE FROM CONTRACTS WITH CUSTOMERS
![Page 4: hma presentation 3 8 - The Maine Chapter of HFMA provides ...€¦ · HFMA MAINE CHAPTER March 10, 2016 Andrea J. Colfer, CPA David Kennedy, CPA. GAIN CONTROL AGENDA ... PRESENTATION](https://reader034.fdocuments.net/reader034/viewer/2022050217/5f630438b163d45920502eef/html5/thumbnails/4.jpg)
GAIN CONTROL
ISSUES IDENTIFIED BY THE AICPA HEALTH CARE TASK FORCE & STATUS
4
![Page 5: hma presentation 3 8 - The Maine Chapter of HFMA provides ...€¦ · HFMA MAINE CHAPTER March 10, 2016 Andrea J. Colfer, CPA David Kennedy, CPA. GAIN CONTROL AGENDA ... PRESENTATION](https://reader034.fdocuments.net/reader034/viewer/2022050217/5f630438b163d45920502eef/html5/thumbnails/5.jpg)
GAIN CONTROL
ISSUES IDENTIFIED BY THE AICPA HEALTH CARE TASK FORCE & STATUS
5
![Page 6: hma presentation 3 8 - The Maine Chapter of HFMA provides ...€¦ · HFMA MAINE CHAPTER March 10, 2016 Andrea J. Colfer, CPA David Kennedy, CPA. GAIN CONTROL AGENDA ... PRESENTATION](https://reader034.fdocuments.net/reader034/viewer/2022050217/5f630438b163d45920502eef/html5/thumbnails/6.jpg)
GAIN CONTROL 6
Contract? Performance Obligations?
Transaction Price? Allocation Recognition
STEPS FOR RECOGNIZING REVENUE
![Page 7: hma presentation 3 8 - The Maine Chapter of HFMA provides ...€¦ · HFMA MAINE CHAPTER March 10, 2016 Andrea J. Colfer, CPA David Kennedy, CPA. GAIN CONTROL AGENDA ... PRESENTATION](https://reader034.fdocuments.net/reader034/viewer/2022050217/5f630438b163d45920502eef/html5/thumbnails/7.jpg)
GAIN CONTROL
DETERMINING TRANSACTION PRICE
Variable Consideration
Expected Value
Most Likely Amount
Constraining Estimates of Variable Consideration:“Include in the transaction price some or all of an amount of variable consideration only to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved.” - FASB ASC 606-10
7
![Page 8: hma presentation 3 8 - The Maine Chapter of HFMA provides ...€¦ · HFMA MAINE CHAPTER March 10, 2016 Andrea J. Colfer, CPA David Kennedy, CPA. GAIN CONTROL AGENDA ... PRESENTATION](https://reader034.fdocuments.net/reader034/viewer/2022050217/5f630438b163d45920502eef/html5/thumbnails/8.jpg)
GAIN CONTROL
IS THERE AN ENFORCEABLE CONTRACT?
8
![Page 9: hma presentation 3 8 - The Maine Chapter of HFMA provides ...€¦ · HFMA MAINE CHAPTER March 10, 2016 Andrea J. Colfer, CPA David Kennedy, CPA. GAIN CONTROL AGENDA ... PRESENTATION](https://reader034.fdocuments.net/reader034/viewer/2022050217/5f630438b163d45920502eef/html5/thumbnails/9.jpg)
GAIN CONTROL
What is the point?
• Improve net asset classifications
• Provide information about:• Liquidity• Financial performance• Cash flows
THE NFP REPORTING PROJECT
9
![Page 10: hma presentation 3 8 - The Maine Chapter of HFMA provides ...€¦ · HFMA MAINE CHAPTER March 10, 2016 Andrea J. Colfer, CPA David Kennedy, CPA. GAIN CONTROL AGENDA ... PRESENTATION](https://reader034.fdocuments.net/reader034/viewer/2022050217/5f630438b163d45920502eef/html5/thumbnails/10.jpg)
GAIN CONTROL
NET ASSET CLASSIFICATIONS:AND THEN THERE WERE TWO
10
![Page 11: hma presentation 3 8 - The Maine Chapter of HFMA provides ...€¦ · HFMA MAINE CHAPTER March 10, 2016 Andrea J. Colfer, CPA David Kennedy, CPA. GAIN CONTROL AGENDA ... PRESENTATION](https://reader034.fdocuments.net/reader034/viewer/2022050217/5f630438b163d45920502eef/html5/thumbnails/11.jpg)
GAIN CONTROL
UNDERWATER ENDOWMENTS• Classify within net assets with donor restrictions rather
than the current unrestricted category
11
![Page 12: hma presentation 3 8 - The Maine Chapter of HFMA provides ...€¦ · HFMA MAINE CHAPTER March 10, 2016 Andrea J. Colfer, CPA David Kennedy, CPA. GAIN CONTROL AGENDA ... PRESENTATION](https://reader034.fdocuments.net/reader034/viewer/2022050217/5f630438b163d45920502eef/html5/thumbnails/12.jpg)
GAIN CONTROL
Changes to better align with the Statement of Activities
CASH FLOWS
12
![Page 13: hma presentation 3 8 - The Maine Chapter of HFMA provides ...€¦ · HFMA MAINE CHAPTER March 10, 2016 Andrea J. Colfer, CPA David Kennedy, CPA. GAIN CONTROL AGENDA ... PRESENTATION](https://reader034.fdocuments.net/reader034/viewer/2022050217/5f630438b163d45920502eef/html5/thumbnails/13.jpg)
GAIN CONTROL
THEN…..AND NOW
13
WAS OPERATING,
NOW FINANCING__________
InterestCash
management
WAS INVESTING,
NOW OPERATING__________
Purchase of long-lived
assetsContributions restricted for
sameSales of long-lived assets
WAS OPERATING,
NOW INVESTING__________
Receipt of interest & dividends
![Page 14: hma presentation 3 8 - The Maine Chapter of HFMA provides ...€¦ · HFMA MAINE CHAPTER March 10, 2016 Andrea J. Colfer, CPA David Kennedy, CPA. GAIN CONTROL AGENDA ... PRESENTATION](https://reader034.fdocuments.net/reader034/viewer/2022050217/5f630438b163d45920502eef/html5/thumbnails/14.jpg)
GAIN CONTROL
ENHANCED REPORTING OF EXPENSES
14
• By nature and function
• Options• Statement• Footnote
![Page 15: hma presentation 3 8 - The Maine Chapter of HFMA provides ...€¦ · HFMA MAINE CHAPTER March 10, 2016 Andrea J. Colfer, CPA David Kennedy, CPA. GAIN CONTROL AGENDA ... PRESENTATION](https://reader034.fdocuments.net/reader034/viewer/2022050217/5f630438b163d45920502eef/html5/thumbnails/15.jpg)
GAIN CONTROL
MEASURES OF OPERATING ACTIVITIES
Before internal transfers After internal transfers
15
![Page 16: hma presentation 3 8 - The Maine Chapter of HFMA provides ...€¦ · HFMA MAINE CHAPTER March 10, 2016 Andrea J. Colfer, CPA David Kennedy, CPA. GAIN CONTROL AGENDA ... PRESENTATION](https://reader034.fdocuments.net/reader034/viewer/2022050217/5f630438b163d45920502eef/html5/thumbnails/16.jpg)
GAIN CONTROL
LIQUIDITY DISCLOSURES• Availability to meet short term needs
• Liabilities that require cash in the near term
• How liquidity is managed
16
![Page 17: hma presentation 3 8 - The Maine Chapter of HFMA provides ...€¦ · HFMA MAINE CHAPTER March 10, 2016 Andrea J. Colfer, CPA David Kennedy, CPA. GAIN CONTROL AGENDA ... PRESENTATION](https://reader034.fdocuments.net/reader034/viewer/2022050217/5f630438b163d45920502eef/html5/thumbnails/17.jpg)
GAIN CONTROL
Financial Instruments ASU 2016-01
17
Exempts entities from disclosure requirements under ASC 825 unless they are public business entities.
![Page 18: hma presentation 3 8 - The Maine Chapter of HFMA provides ...€¦ · HFMA MAINE CHAPTER March 10, 2016 Andrea J. Colfer, CPA David Kennedy, CPA. GAIN CONTROL AGENDA ... PRESENTATION](https://reader034.fdocuments.net/reader034/viewer/2022050217/5f630438b163d45920502eef/html5/thumbnails/18.jpg)
GAIN CONTROL
• Transparent and economically neutral
• Better representation of rights and obligations
• Improves understanding of lessees financial commitments and comparability
Accounting For Leases – Project Completed February 25, 2016
18
![Page 19: hma presentation 3 8 - The Maine Chapter of HFMA provides ...€¦ · HFMA MAINE CHAPTER March 10, 2016 Andrea J. Colfer, CPA David Kennedy, CPA. GAIN CONTROL AGENDA ... PRESENTATION](https://reader034.fdocuments.net/reader034/viewer/2022050217/5f630438b163d45920502eef/html5/thumbnails/19.jpg)
GAIN CONTROL 19
Accounting For Leases - Application
![Page 20: hma presentation 3 8 - The Maine Chapter of HFMA provides ...€¦ · HFMA MAINE CHAPTER March 10, 2016 Andrea J. Colfer, CPA David Kennedy, CPA. GAIN CONTROL AGENDA ... PRESENTATION](https://reader034.fdocuments.net/reader034/viewer/2022050217/5f630438b163d45920502eef/html5/thumbnails/20.jpg)
GAIN CONTROL 20
Accounting For Leases - Transition• Modified retrospective transition includes optional practical
expedients• Effective December 15, 2018 for public companies• December 15, 2019
for all other organizations
![Page 21: hma presentation 3 8 - The Maine Chapter of HFMA provides ...€¦ · HFMA MAINE CHAPTER March 10, 2016 Andrea J. Colfer, CPA David Kennedy, CPA. GAIN CONTROL AGENDA ... PRESENTATION](https://reader034.fdocuments.net/reader034/viewer/2022050217/5f630438b163d45920502eef/html5/thumbnails/21.jpg)
GAIN CONTROL
ASU 2014-08: DISCONTINUED OPERATIONS
21
Applies to:a. A componentb. A group of componentsc. A businessd. A nonprofit activity
![Page 22: hma presentation 3 8 - The Maine Chapter of HFMA provides ...€¦ · HFMA MAINE CHAPTER March 10, 2016 Andrea J. Colfer, CPA David Kennedy, CPA. GAIN CONTROL AGENDA ... PRESENTATION](https://reader034.fdocuments.net/reader034/viewer/2022050217/5f630438b163d45920502eef/html5/thumbnails/22.jpg)
GAIN CONTROL 22
ASC 205-20-45-1 – Discontinued Operations
1. The component “has been disposed of or is classified as held for sale.”
2. “The operations and cash flows of the component have been (or will be) eliminated from the ongoing operations of the entity as a result of the disposal transaction.”
3. “The entity will not have any significant continuing involvement in the operations of the component after the disposal transaction.”
![Page 23: hma presentation 3 8 - The Maine Chapter of HFMA provides ...€¦ · HFMA MAINE CHAPTER March 10, 2016 Andrea J. Colfer, CPA David Kennedy, CPA. GAIN CONTROL AGENDA ... PRESENTATION](https://reader034.fdocuments.net/reader034/viewer/2022050217/5f630438b163d45920502eef/html5/thumbnails/23.jpg)
GAIN CONTROL
DISCONTINUED OPERATIONS- DISCLOSURES
23
1. Facts and circumstances of discontinuation
2. Continued involvement, including quantitative disclosures
3. Major components of:1. Revenue & expenses2. Statement of cash flows
4. Major classes of assets and liabilities of held-for-sale operations
![Page 24: hma presentation 3 8 - The Maine Chapter of HFMA provides ...€¦ · HFMA MAINE CHAPTER March 10, 2016 Andrea J. Colfer, CPA David Kennedy, CPA. GAIN CONTROL AGENDA ... PRESENTATION](https://reader034.fdocuments.net/reader034/viewer/2022050217/5f630438b163d45920502eef/html5/thumbnails/24.jpg)
GAIN CONTROL 24
PRESENTATION OF DISCONTINUED OPERATIONS
1. Present after income (or changes in net assets) from continuing operations in the statement of income (or operations)
2. If held for sale, present assets and liabilities separately in balance sheet
![Page 25: hma presentation 3 8 - The Maine Chapter of HFMA provides ...€¦ · HFMA MAINE CHAPTER March 10, 2016 Andrea J. Colfer, CPA David Kennedy, CPA. GAIN CONTROL AGENDA ... PRESENTATION](https://reader034.fdocuments.net/reader034/viewer/2022050217/5f630438b163d45920502eef/html5/thumbnails/25.jpg)
GAIN CONTROL
ASU 2014-15 GOING CONCERN –Disclosure of Uncertainties about an Entity’s Ability to Continue as a
Going Concern
25
![Page 26: hma presentation 3 8 - The Maine Chapter of HFMA provides ...€¦ · HFMA MAINE CHAPTER March 10, 2016 Andrea J. Colfer, CPA David Kennedy, CPA. GAIN CONTROL AGENDA ... PRESENTATION](https://reader034.fdocuments.net/reader034/viewer/2022050217/5f630438b163d45920502eef/html5/thumbnails/26.jpg)
GAIN CONTROL 26
Going Concern – New timeline
Balance Sheet Date
12/31/XX
Financial Statement
Date3/31/XX
Current auditingstandard12/31/X6
New auditingstandard3/31/X6
![Page 27: hma presentation 3 8 - The Maine Chapter of HFMA provides ...€¦ · HFMA MAINE CHAPTER March 10, 2016 Andrea J. Colfer, CPA David Kennedy, CPA. GAIN CONTROL AGENDA ... PRESENTATION](https://reader034.fdocuments.net/reader034/viewer/2022050217/5f630438b163d45920502eef/html5/thumbnails/27.jpg)
GAIN CONTROL
Looking Ahead:
What’s In The Pipeline
27
![Page 28: hma presentation 3 8 - The Maine Chapter of HFMA provides ...€¦ · HFMA MAINE CHAPTER March 10, 2016 Andrea J. Colfer, CPA David Kennedy, CPA. GAIN CONTROL AGENDA ... PRESENTATION](https://reader034.fdocuments.net/reader034/viewer/2022050217/5f630438b163d45920502eef/html5/thumbnails/28.jpg)
GAIN CONTROL
Questions?
28