Complete Issue

tery life. For example an activity thattransmits the geo-location very oftenwill drain the battery sooner.• Data Transmission – mobile networkcost is based on the volume of data wetransmit, so the application should bedesigned and developed in such a waythat it doesn’t transmit the same dataevery time it connects with back endsystems or vice versa.• Presentation and User-Friendly – themobile application screen designshould be simple, clear and clean,avoid cumbersome texts and inputs.Consider right size text, buttons andcontrols as most of the operationsare triggered by finger touch on thescreens. Keep in mind the screensizeof the device the application isdeveloped for.• Reduce Manual Errors – any automatedapplication should reducemanual error and it is not differentfor mobile healthcare applications.A study points that CPOE & theMedication Administration Applicationreduced manual errors up to 38percent and 55 percent respectively.• Increase Employee Productivity –mobile healthcare applications shouldhelp increase employee productivity,efficiency, and enable the care takeror medical practitioner to take care ofmore patients. A study indicates EHRincreased employee productivity upto 24 percent. According to a privatestudy, a good Mobile Healthcareapplication saves an average of 39minutes for Health Care employees,and allows them to provide more timeto patient care.• Increase Satisfaction – eventually theperformance of the application shouldincrease healthcare providersatisfaction and enable themto serve more patients.• Reduce Labor Costs –Mobile Healthcare Applicationsshould reducelabor cost by automatingthe manual process; and itshould not force the healthcareorganizations or providersto increase the labor to handle andmanage the application exclusively tomake it work.• An Integrated Approach –the successof these mobile healthcare solutionsrequires a holistic and integrated approach;capable to integrate with heterogeneoussystems or applications.By 2015, more than one third of the1.4 billion smartphone users will use atleast one mobile healthcare application.Developing the right mobile healthcareapplications will secure an importantrole for healthcare ISVs, SVs and SPs inthis space.• Electronic Health Record is the mostimportant application driving investmentabove 28% from HealthCare Industry.Next to it, Computerized Physician OrderEntry and Medication Administration attractsinvestment above 13% individually(Source – Motorola)• Mobile Health Care applications will playvital role taking the Health Care systemsto next level in future.• Mobile Health Care market to hit $2.1billion by end of this year – growth by17% in each of the past two years (Source– ComputerWorld)• Health Care Application set to becomehugely popular and above 500 million consumerswill be using the application in next5 years (Source – Research2guidance)• More than 1/3 of 1.4 billion smartphoneusers will use atleast one MobileHealthCare Application by 2015 (Source– Global Mobile Health Market Report2010-2015).Yuva Raja is currently heading the IDEA Lab – Global R&D division of ZSL,Inc., and is responsiblefor delivering the Value Added Research and Product Engineering Services to Enterprises, Startups,ISVs, and Systems Integrators utilizing the enterprise mobile, BI, Cloud and Social Mediatechnologies and platforms. He can be reached at yuvarajam@zslinc.com or 732.379.3934.Taryn BostjancicQAAre you prepared for thechanges in revenue recognitionfor research and developmentdeliverables?FASB Update No. 2010-17:Milestone Method of RevenueRecognitionThe FASB has issued Update No. 2010-17 whichis effective for fiscal years beginning on or afterJune 15, 2010. The Update formalized the methodof recognizing revenue based on milestones. TheUpdate defines a milestone as an event having all ofthe following characteristics: (1) there is substantiveuncertainty at the date the arrangement is enteredinto that the event will be achieved; (2) the eventcan only be achieved based in whole or in parton either the vendor’s performance or a specificoutcome resulting from the vendor’s performance;and (3) if achieved, the event would result inadditional payments being due to the vendor.The Update provides guidance on when themilestone method may be utilized to recognizerevenue that is contingent upon the achievementof a substantive milestone. Upon completion of amilestone the consideration a vendor earns must becommensurate with either the vendor’s performanceto complete the milestone or the enhancement ofvalue delivered. The consideration must relate onlyto past performance and be reasonable relative tothe other deliverables and payments in the contract,meaning there cannot be large upfront paymentswhile most of the work is done later. Additionally,if a portion of the consideration earned fromachieving a milestone may be refunded or adjustedbased on future performance, the contingentconsideration is not considered to relate solely topast performance, and, thus, the related milestonecannot be considered substantive. Finally, theestablishment of milestones must be documentedat the inception of the arrangement. It is acceptableif a vendor chooses to use some other method ofrevenue recognition that defers some portion of theconsideration arising from a milestone.The vendor must disclose in its financial statementsits policy, as well as a description of each arrangementinvolving milestone payments, a determination ofwhether each milestone is considered substantive,the factors considered in determining whether themilestone or milestones are substantive and theamount of milestone consideration recognizedduring the period.Taryn Bostjancic, CPA, is apartner in the New BrunswickOffice of WithumSmith+Brown,Certified Public Accountantsand Consultants and is amember of the firm’s LifeSciences Group. Bostjancic maybe reached at 732.828.1614or tbostjancic@withum.comLifeSci Trends | www.njtc.org | September 2011 9