Statements of Position

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Description

The proposed statement provides guidance for health care entities (a) reporting long-term debt issued through a financing authority, (b) classifying funds whose use is limited as either general (unrestricted) or restricted, and (c) reporting related investment income and interest expense in the financial statements. Only assets restricted by a donor or by a grantor should be reported in the restricted funds section. Unrestricted funds should be called general funds and health care entities should report, as liabilities in the general funds section of the balance sheet, debt issued for their benefit and for repayment of which they are repsonsible when the debt is issued. Assets whose use is limited in substance under the terms of debt indentures, trust agreements, third-party reimbursement arrangements, or other similar arrangements should be reported in the general funds section as assets whose use is limited. Interest expense and investment income on borrowed funds held by a trustee (to the extent they are not capitalized) should be reported separately as operating expense or operating revenue, or alternatively, may be netted and reported as operating expense or operating revenue with the offsetting amount disclosed parenthetically.

ISBN

ed83-10-14t

Publication Date

1983

Relational Format

Book

Keywords

Health facilities -- United States -- Finance; Securities, Tax-exempt -- United States; Hospitals -- United States -- Accounting

Disciplines

Accounting | Taxation

Comments

Originally published by: American Institute of Certified Public Accountants; Copyright and permission to reprint held by: American Institute of Certified Public Accountants; Exposure draft (American Institute of Certified Public Accountants), 1983, Oct. 14

Proposed statement of position : Financial reporting by health care entities of the proceeds of tax-exempt bonds and funds whose use is limited;Financial reporting by health care entities of the proceeds of tax-exempt bonds and funds whose use is limited

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