World Doctors (WD)is a non-profit-organization that provides medical expertise and equipment in areas of the world that cannot afford this type of service or that have been struck with a disaster and need additional medical expertise.It is organized with numerous affiliated organizations.Recently,you have been appointed treasurer and the accountant has come to you with the following questions:
1.WD set up a new NFP which they will use specifically for fund raising purposes.The Board of directors of this agency is a separate Board,but any funds raised will be paid to WD at the end of each year,after all related costs have been deducted.
2.WD purchased shares in a profit-seeking enterprise that manufactures and distributes medical equipment.The rational for this decision was to be able to get a seat on the Board and influence the level of donated equipment made to WD each year.WD purchased 25% in this company.
3.Two directors of WD's Board sit on a board (of a total of 6 members)of a NFP involved in providing relief when disaster strikes around the world.
Required:
Determine the accounting and reporting treatment of the affiliates described above.

Question

Quizplus · Accepted Answer

The Answer of World Doctors (WD)is a non-profit-organization that provides medical expertise and equipment in areas of the world that cannot afford this type of service or that have been struck with a disaster and need additional medical expertise.It is organized with numerous affiliated organizations.Recently,you have been appointed treasurer and the accountant has come to you with the following questions:
1.WD set up a new NFP which they will use specifically for fund raising purposes.The Board of directors of this agency is a separate Board,but any funds raised will be paid to WD at the end of each year,after all related costs have been deducted.
2.WD purchased shares in a profit-seeking enterprise that manufactures and distributes medical equipment.The rational for this decision was to be able to get a seat on the Board and influence the level of donated equipment made to WD each year.WD purchased 25% in this company.
3.Two directors of WD's Board sit on a board (of a total of 6 members)of a NFP involved in providing relief when disaster strikes around the world.
Required:
Determine the accounting and reporting treatment of the affiliates described above.

World Doctors (WD)is a Non-Profit-Organization That Provides Medical Expertise and Equipment