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:

Outsourcing

The business practice of hiring a third-party to perform services, handle operations, or provide goods that are either difficult to manage or outside the company's core competencies.

Alternative Work Arrangements

Methods of staffing other than the traditional hiring of full-time employees, for example, use of independent contractors, on-call workers, temporary workers, and contract workers.

Intranet

A private, secured network used within a corporation to share information, operational systems, or computing services exclusively amongst employees.