SEC Filings

10-12G/A
AMSURG CORP filed this Form 10-12G/A on 05/09/1997
Entire Document
 
<PAGE>   92
 
                                  AMSURG CORP.
 
         NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
 
   
Of." (See Notes 2, 9 and 10). Whenever events or changes in circumstances
indicate that the carrying amount of long-term assets may not be recoverable,
management assesses whether or not an impairment loss should be recorded by
comparing estimated undiscounted future cash flows with the assets' carrying
amount at the partnership level. If the assets' carrying amount is in excess of
the estimated undiscounted future cash flows, an impairment loss is recognized
as the excess of the carrying amount over estimated future cash flows discounted
at an applicable rate. Intangibles and other long-lived assets to be disposed of
are reported at the lower of the carrying amount or fair value less cost to
sell.
    
 
  g. Income Taxes
 
     The Company files a consolidated tax return which includes all of its
subsidiary corporations and computes its tax provision under Financial
Accounting Standard No. 109 "Accounting for Income Taxes."
 
  h. Revenue Recognition
 
   
     Revenues are comprised of the following:
    
 
   

<TABLE>
<CAPTION>
                                                   1994          1995          1996
                                                -----------   -----------   -----------
<S>                                             <C>           <C>           <C>
Surgery center revenues.......................  $13,460,072   $21,641,743   $28,950,498
Physician practice revenues...................           --            --     5,155,148
Management fees...............................      168,089       424,202       456,574
Interest and other............................      198,405       423,434       444,996
                                                -----------   -----------   -----------
                                                $13,826,566   $22,489,379   $35,007,216
                                                ===========   ===========   ===========
</TABLE>

    
 
   
     Surgery center revenues consist of the billing for the use of the Centers'
facilities (the "usage fee") directly to the patient or third party payor. The
usage fee does not include any amounts billed for physicians' services which are
billed separately by the physicians to the patient or third party payor.
    
 
   
     Physician practice revenues consist of the billing for physician services
of the Company's one majority owned physician practice in 1996. The billings are
made by the practice directly to the patient or third party payor.
    
 
   
     Revenues from surgery centers and physician practices are recognized on the
date of service, net of estimated contractual allowances from third party
medical service payors including Medicare and Medicaid. During the years ended
December 31, 1994, 1995 and 1996 approximately 39%, 37%, and 36%, respectively,
of the Company's revenues were derived from the provision of services to
patients covered under Medicare and Medicaid. Concentration of credit risk with
respect to other payors is limited due to the large number of such payors.
    
 
   
     Management fees revenue is derived from providing management services to
one surgery center in which the Company has no ownership interest and is
recognized as the services are provided.
    
 
  i. Net Income Per Share
 
     Net income per share is computed by dividing net income by the weighted
average number of common shares and equivalents outstanding.
 
  j. Fair Value of Financial Instruments
 
     Financial Accounting Standard No. 107, "Disclosures About Fair Value of
Financial Instruments," requires disclosure of the fair value of certain
financial instruments. Cash and cash equivalents, receivables and payables are
reflected in the financial statements at cost which approximates fair value.
Management
 
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