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

question 13

Essay

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.

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Definitions:

Safety Inspections

The examination of facilities, equipment, or processes to ensure they comply with safety standards and regulations, aiming to prevent accidents and injuries.

Health Inspectors

Officials responsible for ensuring compliance with public health regulations and standards, especially in food establishments, housing, and workplaces.

Closed Shop

A labor arrangement whereby all employees must be members of a specific union before being hired, typically agreed upon through union and employer negotiations.

Taft-Hartley Act

A United States federal law that restricts the activities and power of labor unions.