.121 Audit and accounting guide
- Excluded from AAG-HCO and ASC 954 are certain not-for-profit health care organizations whose primary source of income is contribution income rather than revenues earned in exchange for providing (or agreeing to provide) health care services (i.e., they do not charge for their services). Those types of organizations (defined in ASC Master Glossary as "voluntary health and welfare organizations") should instead follow the guidance of the AICPA Audit and Accounting Guide, Not-for-Profit Entities, and ASC 958, Not-for-Profit Entities. Accounting and reporting considerations for those organizations are discussed in ARM 9692.
- AAG-HCO generally applies to state and local government-owned health care enterprises that use enterprise fund accounting and reporting. Governmental health care operations that are not accounted for in enterprise funds because user fees are not a principal revenue source (for example, certain long-term care institutions) follow the AICPA audit and accounting guide for state and local government entities exclusively (see ARM 9812).
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