Briefing / Accounting for digital technologies - looking at the detail

The HFMA briefing Accounting for revenue and capital: implications for the digital age explores the key funding and accounting issues that need to be considered when developing business cases for digital transformation projects. That briefing provided high level examples of the likely accounting treatment for digital projects. 

This briefing continues to highlight the importance of capital and arriving at the correct accounting treatment for digital projects which may or may not be capital. It is intended to help finance teams as well as others involved in digital projects by providing more detail on the questions that need to be asked when determining the accounting treatment for a digital investment.  

The briefing sets out the process that NHS bodies and their auditors follow when determining the appropriate accounting treatment. Finally, it considers the impact of the Health and Care Act 2022 on accounting for digital projects.