The Ohio Society of CPAs has featured Tony LaNasa, CPA, CFE, managing principal of HW&Co.’s Columbus office, in an article detailing how new accounting pronouncements will ‘significantly’ affect health care.
“New accounting pronouncements are here, and experts are suggesting health care organizations work closely with accounting firms to “tackle these issues at the front end” and avoid confusion once the standards are implemented.
Tony LaNasa, CPA, CFE, managing principal of Columbus office at HW&Co., said the firm has worked with clients already to prepare them for the changes to come and implement processes to help ease the transition.
One of these processes is including more detailed footnotes in company financial statements. This involves “understanding the different payers, how they’re billing and being reimbursed, and getting that all on paper, then creating a footnote disclosure.” LaNasa said this can add several pages to the financial statement.
While this could be postponed by the FASB, LaNasa said the new leases standard will impact nonprofit and for-profit companies alike. Once the standard is implemented, “all leases will be recorded on the company’s balance sheet as a right of use asset and a lease liability. Previously, leases determined to be operating leases were not recorded on the company’s balance sheets and were just expensed as paid each month. It will significantly increase liabilities for some companies that lease office space, equipment, etc.”
Tony will be speaking at the OSCPA’s health care conference on October 24th in Columbus.