Acc548 Week 5 Reporting Requirements Memo
Reporting Requirements Memo | Not-For-Profit and Government Accounting/ACC548
MEMORANDUM
Date:
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To: CPA Senior Partner
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From:
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Subject: Reporting Requirements
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Objectives
This memo is prepared with two objectives as follows: 1. To provide analysis reporting requirement both of a small county hospital (SCH) and a private not-for-profit nursing home (PNH). 2. To provide comparison and contrast accounting practices between the two entities.
Analysis Reporting Requirements for a Small County Hospital
Based on the standard setting of authoritative body, a small county hospital as a special purpose entity has to follow the accounting and reporting standards of GASB Statement 34 (Category A GAAP) and the AICPA Health Care Guide (Category B GAAP).
Consequently, the components of financial report the SCH has to prepare statements: Statement of Net Assets, Statement of Revenues, Expenses, and Changes in Fund Net Assets, Statement of Cash Flows. In addition to statement includes: Management Discussion and Analysis (MD&A), Notes to the Financial Statements, and Required Supplementary Information other than MD&A.
This SCH chooses as enterprise activity uses accrual basis accounting and economic measurements focus with modifications as required by the AICPA Health Care Guide. Consequent to the Health Care Guide, the SCH has different equity accounts than non-governmental entities. * Cash Flows, the SCH use the four category GASB format of cash flows: (1) from operating activities; (2) from noncapital financing activities; (3) from capital and related financing
MEMORANDUM
Date:
-------------------------------------------------
To: CPA Senior Partner
-------------------------------------------------
From:
-------------------------------------------------
Subject: Reporting Requirements
-------------------------------------------------
Objectives
This memo is prepared with two objectives as follows: 1. To provide analysis reporting requirement both of a small county hospital (SCH) and a private not-for-profit nursing home (PNH). 2. To provide comparison and contrast accounting practices between the two entities.
Analysis Reporting Requirements for a Small County Hospital
Based on the standard setting of authoritative body, a small county hospital as a special purpose entity has to follow the accounting and reporting standards of GASB Statement 34 (Category A GAAP) and the AICPA Health Care Guide (Category B GAAP).
Consequently, the components of financial report the SCH has to prepare statements: Statement of Net Assets, Statement of Revenues, Expenses, and Changes in Fund Net Assets, Statement of Cash Flows. In addition to statement includes: Management Discussion and Analysis (MD&A), Notes to the Financial Statements, and Required Supplementary Information other than MD&A.
This SCH chooses as enterprise activity uses accrual basis accounting and economic measurements focus with modifications as required by the AICPA Health Care Guide. Consequent to the Health Care Guide, the SCH has different equity accounts than non-governmental entities. * Cash Flows, the SCH use the four category GASB format of cash flows: (1) from operating activities; (2) from noncapital financing activities; (3) from capital and related financing
References: Copley, P. A., & Engstrom, J. H. (2011). Essentials of Accounting for Governmental and Not-for-Profit Organizations (10th ed.). New York, NY: McGraw-Hill.