On Feb. 1, 2018, the AICPA shared the draft revenue recognition implementation guidance for continuing care retirement communities (CCRCs) related to FASB ASC 606 for public comment.
In this webinar, Baker Tilly Partner Mark Ross and Brian Gabriel along with A.V. Powell of A.V. Powell & Associates provide a walk-through of the recently released ASC 606 draft implementation guidance for CCRCs.
Key webinar takeaways at a glance:
- Issue #8-3 - Application of FASB ASC 606 to continuing care retirement community (CCRC) contracts is now exposed for public comment; comment period ends on April 2, 2018.
- Issue #8-3 provides three primary options for the recognition of the nonrefundable entrance fees. Organizations should review the options and determine which one works best for them.
- ASC 606 is effective for public entities for years ending after Dec. 15, 2017 and for nonpublic entities for years ending after Dec. 15, 2018.
- There will be more analysis at the AICPA level in the months to come of the new lease standard (ASC 842) and its impact (if any) on revenue recognition for CCRCs.
- ASC 606 requires additional disclosures related to revenues, one of which is disaggregation of revenues by level of care, geography, business line, etc.
- Organizations should start to think about these expanded disclosures requirements now so they have systems in place to produce the necessary information by the effective date for ASC 606.
For more information on this topic, or to learn how Baker Tilly healthcare specialists can help, contact our team.