There’s a major challenge about to confront every public and private lab company that prepares its financial statements according to generally accepted accounting principles (GAAP). It is the substantial change in revenue recognition standards and this change may cause a measurable downward adjustment in your lab company’s reported financial results.
Managed care contracts are the lifeblood of every successful clinical laboratory and anatomic pathology company. That is why this new accounting rule, known as “FASB Rule 606–Revenue Recognition Standard,” has the potential to be disruptive because it changes how lab companies must account for revenue from these three categories:
- Payer type: Private payers, Medicare, Medicaid, Medicare Advantage
- Patient responsibility type: Uninsured, self-pay, by size of deductibles
- Self-pay type: Identify relevant sub-categories
Is the financial team at your lab company familiar with FASB Rule 606-Revenue Recognition Standard? Do they understand all the requirements, as well as the pitfalls for failing to properly prepare to comply with this rule? Would your executives, CFOs, and CPA firm benefit from hearing the latest developments on this subject from national experts?
Answer yes to any of these questions, and you and your lab’s financial team—as well as the CPA firm that audits your company’s books—will want to join us for a special, first-in-the-lab-industry, webinar event. “Preparing your Lab Company for Big Changes in Revenue Recognition Standards and Audits by Your CPA Firm,” will take place on Tuesday, May 30, at 1:00 PM EDT.
This webinar will teach you how to:
Understand why ASC 606-Revenue Recognition Standard makes fundamental changes to the existing requirements for reporting revenueLearn to create a framework to analyze your lab’s unique mix of contracts and payer types to comply with ASC 606Discover what—consistent with GAAP—your CPA firm will do when auditing your company’s records for compliance with ASC 606Know the specific problems you’ll face when analyzing data from contracts involving high-deductible health plans and the patient Appreciate the reasons why implementation of ASC 606 can produce a weaker financial performance compared to your lab’s current Identify specific ways that ASC 606-Revenue Recognition Standard can improve your lab’s audited financial performance
Know your risks for improper or inappropriate compliance with the new rule, from best case to worst case