The company is under IFRS. It provide services to health care providers by filing applications on their behalf to the insurance companies for their inclusion in their networks. It usually takes 3-4 months to get the provider in insurance network. it usually involve
1: Submitting application and documents to insurance company on provider's behalf
2: CPT coding of services and negotiating prices with insurance companies on provider's behalf
3: Assisting in site visits and other matters.
Now the contract state that we will help their inclusion in 5 different insurance networks for 600 each and in 2 networks for free. So total amount would be 3000 , would recognising the whole 3000 at year end would be right accounting treatment if they had been included in 6 networks with one remaining. All the 7 services are same and there is no mention of which one are free in the contract.
1: Submitting application and documents to insurance company on provider's behalf
2: CPT coding of services and negotiating prices with insurance companies on provider's behalf
3: Assisting in site visits and other matters.
Now the contract state that we will help their inclusion in 5 different insurance networks for 600 each and in 2 networks for free. So total amount would be 3000 , would recognising the whole 3000 at year end would be right accounting treatment if they had been included in 6 networks with one remaining. All the 7 services are same and there is no mention of which one are free in the contract.