New FAQs address health care entity pandemic accounting

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.