Assignment: FARS CASE
Write a 1,050- to 1,400-word response in which you address the following questions from Case 3, Charitable Contributions and Debt: A Comparison of St. Jude Children's Research Hospital/ALSAC and Universal Health Services:
• Questions from Requirement A: Recording Revenue
1. What is meant by the reference in Table 5.3-1 to an FAS 116 adjustment?
2. How are contributions recorded? Is there a distinction between pledges receivable and accounts receivable?
3. Are there circumstances when financial statements can quantify volunteers' services?
4. Can financial statement users of not-for-profit hospitals' financial statements expect to be fully informed regarding affiliated parties, such as the linkages between St. Jude Children's Research Hospital, ALSAC, and the foundation cited? Explain.
• Questions fromRequirement B: Revenue Mix (Strategy-Related Considerations)
1. How does this revenue mix compare with the revenue blend of the not-for-profit entity, St. Jude Children's Research Hospital (ALSAC)? Access the latest SEC filing and compare the reported revenue mix; has it changed?
2. What does that imply as to the strategies of investor-owned hospitals in managing risk and ensuring adequate capital relative to not-for-profit entities? An opportunity exists to explore the greater social and political questions that are frequently debated about the compatibility of profit-oriented entities and quality of health care, relative to not-for-profit entities. As background, identify what the latest SEC filings report concerning charity care.
• How would your answers to Requirements A and B differ if the government owned and operated the hospital?
Attachment:- FARS CASE.rar