Sutter exiting Sonoma Issue Analysis

Overview:Sutter Health, the Sacramento-based system, plans to weedy Sutter medical philia of Santa genus genus Rosa and sell the shopping centre?s Warrack Campus. Due to the $72 million losses incurred during the subprogram of the travel 10 years, Sutter Health decided to pull out(p) of the hospital market in the area of California?s Sonoma Country by 2008. The deal of selling the Warrack Campus to its rival Santa Rosa recital was declare after negotiation, and the term of deal testament be unopen in 60 to 90 days. bit: How to account for the answer of the Sutter medical center and the potential barter of Warrack Campus, whether they should be inured as discontinue achievement or non. Specifically, Sutter medical center as disposed of and Warrack Campus is classified as ?held for sale?. harmonise to CICA Handbook section 3475 (.27), the transactions or events should meet both(prenominal) of the following conditions to qualify as discontinued trading operations:1. The operations and cash flows of the lot soak up been (or exit be) eliminated from on going operations of the enterprise as a termination of the disposal transaction2.

The enterprise will not have some(prenominal) significant continuing involvement in the operation of the component after the disposal transactionClassify as Discontinued OperationsDo not class as Discontinued Operations·Recognition (CICA 3475)-Separately in operation(p) in the area of Sonoma, the Sutter medical center and its Warrack Campus are discriminable operate unit of Sutter Health. Moreover, their cash flows and financial elements are distinctly decided from the rest of the Sut! ter Health, since their losses of $72 million sinning 1996 was reason and presented in the case. For this reason, they qualify to be components of the business.-Sutter Health announced to close Sutter medical center and sell its Warrack Campus to its rival Santa Rosa Memorial by 2008. The operations and cash flows of the components will... If you want to swallow a full essay, order it on our website: OrderCustomPaper.com

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