Health Care Expert Panel Develops TPA on Accounting for Costs Incurred During ICD-10 Implementation

The U.S. health care system is scheduled to transition from the International Classification of Diseases, 9th Edition, to the ICD, 10th Edition, by Oct. 1, 2013. Developed by the AICPA Health Care Expert Panel, Technical Question and Answer 6400.48 has been issued to provide nonauthoritative guidance regarding how a health care entity should account for costs incurred in connection with the implementation of ICD-10. The TPA also includes factors to consider in the assessment of whether modifications to an entity’s existing software system result in additional functionality, as described in Financial Accounting Standards Board Accounting Standards Codification 350-40, Internal Use Software, beyond the original software’s capabilities and qualify as an upgrade or enhancement.