New Accounting Standards Will Have Significant Impact on Senior Living Facilities
May 24, 2017
In less than a year, new revenue standards (IFRS 15/ASC 606), which were jointly developed by the International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB) will go into effect. To be exact, the new standards take effect on January 1, 2018.
IFRS 15 requires new financial and non-financial data to be maintained for all revenue from contracts with customers. This includes (but is not limited to) agreements between senior living facilities and their residents. From a compliance perspective, financial data must also be processed and reported in a specific way—including the disclosure of new information about customer contracts that was not previously required and a new basis for budget and forecast measurements.
For many senior living facilities, these new standards will have a significant impact on operational and accounting procedures. That said, it’s important to be proactive about required changes. Our team of financial experts can provide you with the latest guidance on this issue, explain how the new rules may affect your business, and keep you in compliance. Contact us for assistance and additional insights.