Guidance provided on health care accounting for ICD-10 implementation costs

The AICPA Health Care Expert Panel has developed nonauthoritative guidance on how health care entities should account for costs incurred in connection with the implementation of the 10th edition of the International Classification of Diseases (ICD-10).

By Oct. 1, 2013, the U.S. health care system is scheduled for a transition to ICD-10 from the ninth edition (ICD-9) code sets used to report medical diagnoses and inpatient procedures.

Technical Question and Answer (TPA) 6400.48 provides nonauthoritative guidance that includes factors to consider in assessing whether modifications to an entity’s existing software system qualify as an upgrade or enhancement.

—Ken Tysiac (ktysiac@aicpa.org) is a JofA senior editor.