title: FASB's ASU 2011-7 changes financial statement reporting requirements.
abstract: FASB's new Accounting Standards Update 2011-07 will change how healthcare entities accumulate and report major portions of their financial statements, including patient revenues, net accounts receivables, and bad-debt expenses. Healthcare entities now must reclassify their provisions for bad debts associated with patient service revenue from an operating expense to a deduction from patient service revenue (net of contractual allowances and discounts). International Financial Reporting Standards do not require healthcare entities to comply with this new standard.
authors.affiliation: School of Business Administration, Wayne State University, Detroit, USA. a.reinstein@wayne.edu
authors.forename: Alan
authors.initials: A
authors.lastname: Reinstein
authors.forename: Natalie Tatiana
authors.initials: NT
authors.lastname: Churyk
mesh_terms: D000066:Accounting / Q000592:standards*; D026683:Advisory Committees; D004469:Economics, Hospital / Q000458:organization & administration*; D037141:Mandatory Programs; D010350:Patient Credit and Collection / Q000458:organization & administration*; D014481:United States