New FAQs address health care entity pandemic accounting

By Ken Tysiac

New frequently asked question guidance for health care entities on pandemic-related questions have been added to a list that was first posted Aug. 3.

All the FAQ guidance was developed by the AICPA with assistance from a group of health care experts and is designed to assist financial statement preparers and auditors as they work through challenges they are encountering as a result of the pandemic.

The new FAQs address:

  • The downturn in the economy and job market related to the pandemic and its impact on accounts receivable and estimate of the transaction price.
  • The carrying value of supply inventories of protective equipment and supplies, some of which were purchased for prices significantly higher than what was considered normal before the pandemic.

Ken Tysiac (Kenneth.Tysiac@aicpa-cima.com) is the JofA’s editorial director.

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