National Board Proposes New Standard for Reporting Charity Care

The Financial Accounting Standards Board is proposing to change healthcare accounting standards so that reports on charity care would be based on direct and indirect costs of providing the care.

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The FASB said the standard would enhance comparability of financial disclosures. Healthcare providers have been split between using a cost-based measure and a revenue-based measure.

The FASB set a May 17 deadline for commenting on the proposal.

Read the Financial Accounting Standards Board’s report on charity care reporting (pdf).

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