HOSPITAL REGULATORY AGENCIES Scenario Scenario A local hospital, which serves a population of approximately 250,000 citizens, has 400 beds for various levels of patient acuity, along with an emergency room, testing labs, operating rooms, and the usual ancillary services for a typical hospital of this size. The hospital administrator has met with the hospital’s Vice President of Human Resources regarding some concerns regarding the recent Patient Protection and Affordable Care Act (ACA) and its impact on the hospital. The Vice President of Human Resources has briefed you on the employee-related provisions of the new law. Although there are very few provisions that require the hospital to make significant changes to policies and procedures, there is a concern about the number of agencies that now have an added emphasis on the hospital providing high quality health care to the patients. Vice President of Human Resources has also provided some additional information regarding how the Department of Health and Human Services, Medicare, and Medicaid have increased their oversight of all hospital operations, especially regarding the receipt of all due reimbursements. In fact, the hospital is now required to demonstrate, qualitatively and quantitatively, that the hospital is spending at least 80% of all reimbursements on patient treatments, etc., with the remaining 20% accounted for by administrative costs and profits, if any. In addition, the hospital must show it is increasing the quality of patient outcomes, along with demonstrating cost containment measures. Considering the evolvement of the new government regulatory agency requirements for the hospital, the hospital administrator has decided to add the new role of Vice President of Risk Management to the Vice President of Human Resources’ existing job title and responsibilities. As a result of this change, the Vice President of Human Resources now has to consider the following questions: Questions: 1. How does the Vice President of Human Resources stay abreast of current and future government agency rulings that affect the hospital? 2. How are the medical coding and billing functions affected? What training and development are needed? 3. How and where does the Vice President of Human Resources find methodologies for remaining in compliance with the agencies? 4. Why did the hospital administrator choose the Vice President of Human Resources to perform these new duties? Why not the Vice President of Accounting? Assessment 2 San Pedro Industries Presented below are selected accounts from the adjusted trial balance ($ Millions) for San Pedro Industries for June 30 of the current year. Debit Credit Accounts Receivable—trade $895 Building and Equipment 1425 Cash in bank—Operating 76 Interest Receivable 60 Installment receivables 120 Merchandise Inventory 100 Land 600 Notes receivable—Long term 475 Petty cash 12 Prepaid expenses current 46 Su ...

1. HOSPITAL REGULATORY AGENCIES Scenario
Scenario
A local hospital, which serves a population of approximately
250,000 citizens, has 400 beds for various
levels of patient acuity, along with an emergency room, testing
labs, operating rooms, and the usual
ancillary services for a typical hospital of this size. The hospital
administrator has met with the hospital’s
Vice President of Human Resources regarding some concerns
regarding the recent Patient Protection
and Affordable Care Act (ACA) and its impact on the hospital.
The Vice President of Human Resources has briefed you on the
employee-related provisions of the
new law. Although there are very few provisions that require
the hospital to make significant changes
to policies and procedures, there is a concern about the number
of agencies that now have an added
emphasis on the hospital providing high quality health care to
the patients.
Vice President of Human Resources has also provided some
additional information regarding how the
Department of Health and Human Services, Medicare, and
Medicaid have increased their oversight of
all hospital operations, especially regarding the receipt of all
due reimbursements. In fact, the hospital is
now required to demonstrate, qualitatively and quantitatively,
that the hospital is spending at least 80% of
all reimbursements on patient treatments, etc., with the

2. remaining 20% accounted for by administrative
costs and profits, if any. In addition, the hospital must show it
is increasing the quality of patient
outcomes, along with demonstrating cost containment measures.
Considering the evolvement of the new government regulatory
agency requirements for the hospital, the
hospital administrator has decided to add the new role of Vice
President of Risk Management to the Vice
President of Human Resources’ existing job title and
responsibilities.
As a result of this change, the Vice President of Human
Resources now has to consider the following
questions:
Questions:
1. How does the Vice President of Human Resources stay
abreast of current and future government
agency rulings that affect the hospital?
2. How are the medical coding and billing functions affected?
What training and development are
needed?
3. How and where does the Vice President of Human Resources
find methodologies for remaining in
compliance with the agencies?
4. Why did the hospital administrator choose the Vice President
of Human Resources to perform these
new duties? Why not the Vice President of Accounting?
Assessment 2
San Pedro Industries

3. Presented below are selected accounts from the adjusted trial
balance ($ Millions) for San Pedro Industries for June 30 of the
current year.
Debit
Credit
Accounts Receivable—trade
$895
Building and Equipment
1425
Cash in bank—Operating
76
Interest Receivable
60
Installment receivables
120
Merchandise Inventory
100
Land
600
Notes receivable—Long term
475
Petty cash
12
Prepaid expenses current
46

4. Supplies
28
Patent
85
Accounts Payable—Trade
710
Accumulated Depreciation
375
Additional Paid in Capital
725
Allowance for Uncollectible Accounts
95
Cash Dividends Payable
50
Common Stock—$1 par value
90
Income tax payable
105
Notes payable—2 years
1000
Retained Earnings
85
Unearned Revenues—2 years

5. 125
Cash Dividends Declared
200
Income Summary
762
TOTALS
$4122
$4122
Required:
a) Prepare a classified balance sheet using the account format
for San Pedro Industries.
b) Prepare a classified balance sheet using the report format for
San Pedro Industries.
c) Prepare a classified balance sheet in IFRS-acceptable format
for San Pedro Industries.
Prepare journal entries to record current tax and deferred tax for
the year ended 30 June 2015
Assessment Mapping Checklist
Learner Name/ID: ___________________________________
Performance & Knowledge Evidence
C/NYC
Comments
Performance Evidence
· access and accurately compile data and prepare reports for
corporate entities that comply with:

6. · organisational policy and procedures
· relevant accounting standards
· statutory and other relevant requirements of reporting bodies.
Knowledge Evidence
· identify and explain current business taxation requirements
· identify and explain current financial legislation and statutory
requirements relating to taxable transactions and reporting
requirements
· discuss ethical considerations in relation to conflict of
interest, confidentiality and disclosure requirements
· explain the key features of integrated computerised accounting
systems
· describe a range of methods and formats for presenting
financial data
· outline options, methods and practices for recording and
reporting deductions, benefits and depreciation

7. · identify and describe the key requirements of organisational
policy and procedures relating to the preparation of financial
reports
· identify and explain the key principles of double-entry
bookkeeping and accrual accounting
· identify and explain business legal requirements relating to
delegated authorities, reporting periods and taxation payment
timings.
Comments:
Signed by Learner:
Date:
Signed by Assessor:
Date:
Assessment 1 - Written Examination
At 30 June 2014, E-Surfboards Limited had the following
temporary differences:
Page 659
The following information is available for the following year,
the year ending 30 June 2015.
E-Surfboards Limited depreciates computers over five years in
its accounting records but over three years for tax purposes. The
straight-line method is used. During the year E-Surfboards

8. wrote off bad debts amounting to $15 000. Warranty costs of
$70 000 were paid during the year. No amounts were paid for
long-service leave during the year. The following information is
extracted from the statement of financial position at 30 June
2015:
There was no acquisition of plant and equipment during the
year.
The tax rate as at 30 June 2014 and 30 June 2015 was 30 per
cent.
REQUIRED
(a)
Calculate the amount of each of E-Surfboards' temporary
differences, if any, at 30 June 2014, and state whether it is
deductible or taxable.
(b)
What is the balance of the deferred tax liability and deferred tax
asset, if any, as at 30 June 2014?
(c)
Calculate E-Surfboards' taxable income for the year ended 30
June 2015.
(d)
Prepare journal entries to record current tax and deferred tax for
the year ended 30 June 2015
Assessment Mapping Checklist
Learner Name/ID: ___________________________________
Performance & Knowledge Evidence
C/NYC
Comments
Performance Evidence
· access and accurately compile data and prepare reports for
corporate entities that comply with:
· relevant accounting standards

9. · statutory and other relevant requirements of reporting bodies.
Knowledge Evidence
· identify and explain current business taxation requirements
· identify and explain current financial legislation and statutory
requirements relating to taxable transactions and reporting
requirements
· explain the key features of integrated computerised accounting
systems
· describe a range of methods and formats for presenting
financial data
· outline options, methods and practices for recording and
reporting deductions, benefits and depreciation
· identify and explain the key principles of double-entry
bookkeeping and accrual accounting
Comments:
Signed by Learner:
Date:
Signed by Assessor:

10. Date: