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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.
How would the answers to each of these 4 change is the government owned and operated the hospital?

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