| 29. | Retrospective application of new accounting standards |
Effective January 1, 2012, the Company adopted FASB’s ASU No. 2011-07 Health Care Entities—Presentation and Disclosure of Patient Service Revenue, Provision for Bad Debts, and the Allowance for Doubtful Accounts. In addition, effective January 1, 2012, the Company also adopted FASB’s ASU No. 2011-05 as amended by ASU No. 2011-12 Comprehensive Income—Presentation of Comprehensive Income. Upon adoption of these standards the Company was required to change the presentation of its provision for uncollectible accounts related to patient service revenue as a deduction from patient service revenues and to either report the components of comprehensive income separately on the income statement or to present total other comprehensive income and the components of comprehensive income in a separate statement. These consolidated financial statements have been revised for all periods presented to reflect the retrospective application of adopting these new presentation and disclosures requirements for the provision for uncollectible accounts and comprehensive income.
The effects of the change upon the retrospective application for the presentation and disclosure requirements for patient service revenue and the provision for uncollectible accounts were as follows:
| Year
ended December 31, 2011 |
||||
|
Consolidated income statements: |
||||
|
Net revenues as previously reported |
$ | 6,982,214 | ||
|
Total net revenues under the new presentation requirements: |
||||
|
Dialysis and related lab services patient service revenues |
$ | 6,470,540 | ||
|
Less: Provision for uncollectible accounts |
(190,234 | ) | ||
|
Net patient service revenues |
6,280,306 | |||
|
Capitated revenues |
45,133 | |||
|
Other revenues |
406,367 | |||
|
Total net revenues |
6,731,806 | |||
| Year
ended December 31, 2011 |
||||
|
Provision for uncollectible accounts: |
||||
|
Provision for uncollectible accounts as previously reported |
$ | 197,565 | ||
|
Less: Provision for uncollectible accounts |
(190,234 | ) | ||
|
Discontinued operations |
(4,022 | ) | ||
|
Provision for uncollectible accounts |
$ | 3,309 | ||
See footnote 3 to the consolidated financial statements for additional disclosure on the Company’s policies for recognizing revenue, assessing bad debts as well as quantitative and qualitative information regarding changes in the allowance for doubtful accounts. See also footnotes 25, 27 and 28 to the consolidated financial statements, which have been updated for the retrospective application of these new presentation requirements.
An additional effect of adopting FASB’s ASU No. 2011-05 as amended by ASU No. 2011-12 Comprehensive Income—Presentation of Comprehensive Income was that the Company eliminated the presentation of the components of other comprehensive income within the statements of equity and reported the components of other comprehensive income in a separate statement of comprehensive income. See the statements of equity and statements of comprehensive income for further details as well as footnote 28 to the consolidated financial statements.