Reference no: EM131031382

Problem 1:

A public college or university can be characterized as governmental, business-like, or a combination of the two. What are the descriptions of each type, and how does a college choose among them?

Please provide an example of each type of college by going to their website and reviewing their financial statements.

Problem 2:

Class, why do colleges and universities report some scholarships as revenue deductions and others as expenses? What are some of the guidelines?

Does this distort the financial reporting process?

Problem 3:
Class, what are the unique accounting and measurement issues present for healthcare entities? How can a CFO address these issues?

Problem 4:

Good point Ethan. Class, this is illustration 17-2 (not 17-1). The differences in GAAP guidance is due to the different types of healthcare entities: investor-owned (like a corporate business and is for-profit), not-for-profit, and governmental.

Class, what are some of the unique ratios mentioned in chapter 17 that healthcare entities are evaluated on? Why might these ratios be used (think about the issues healthcare entities deal with)?

ILLUSTRATION 17-2: GAAP for Health Care Entities in Different Sectors
Accounting and Reporting Issue	Investor Owned	Not-for-Profit	Governmental
Reporting entity	APB Opinion No. 18	AICPA SOP 94-3	GASB Codification. Sec. 2100 (see Footnote 9 for citiation)
	SFAS AO 94
Contribution and financial statement display	SFAS No 116	SFAS Nos 116 and 117	GASB Codification Secs NS0 and 2200
Cash flows	SFAS No 95	SFAS no 95	GASS Codification Sec. 2450
Deposits with	SEAS No 105	SFAS no., 105	GASS Codification Sec C20
financial insututrons
Investments	SFAS No 115 and AAG-HCO. Chapter 4	SFAS No 124	GASB Codification Sec. ISO
Operating leases	SFAS No 13	SFAS No 13	GASS Codification Sec. C20
Prepaid health care arrargements and self insurance program	AAG.HCO. Chapten 8 and 14	AAG-HCO, Chapters 8 and 14	GASB Codification Secs C50 and Po20
Compensated absense	SPAS Nos 43 and 112	SFAS NOS. 43 and 112	GASS Codification Sec. C60
Debt refundings	APB Opinion No. 26, SFAS Nos. 4 and 125	APB Opnion No 26. SFAS Nos .4 and 125	GASS Codification Sec. D20
Pensions	SFAS Nos. 87, 132 (revcsed) and 158	SFAS Nos 87. 132 (tensed), and 158	GASS Codification Sec. P20
Risks and uncertainties	AICPA SOP 94-6	AICPA SOP 91-6	GASS Codification Sec. C SO
Post-retirement benefits	SFAS Nos 106 and 132 (revised)	SFAS NO 106 and 132 (revised)	GASS Codification Sec. P50
Fair value measurements	SFAS No. 157	SFAS No 157	None