Bad Toys Holdings, Inc. (OTCBB: BTYH) announced today that its formally wholly owned subsidiary, Southland Health Services, Inc., will change its method of accounting for revenue and uncompensated care, previously referred to as the provision for doubtful accounts or bad debt, in order to align with the preferred industry standard. In addition to its historical presentation of presenting revenue net of contractual discounts, the Company will now present its revenue net of uncompensated care as well.
The Company historically has presented revenue net of contractual discounts. The estimate for uncompensated care, previously defined as the provision for doubtful accounts or bad debt, was presented as an operating expense. The new method will have no impact on operating income, net income, earnings per share, or operating cash flows as reported in the current year or in prior years.
