Sutter exiting Sonoma Issue Analysis

Overview:Sutter Health, the Sacramento-based system, plans to soused Sutter medical philia of Santa genus genus Rosa and sell the stub?s Warrack Campus. Due to the $72 million losses incurred during the subprogram of the pull through 10 years, Sutter Health decided to pull out(p) of the hospital merchandise in the area of California?s Sonoma Country by 2008. The deal of selling the Warrack Campus to its rival Santa Rosa biography was certify after negotiation, and the term of deal testament be close in 60 to 90 days. bit: How to account for the resoluteness of the Sutter medical center and the potential barter of Warrack Campus, whether they should be treat as discontinue achievement or non. Specifically, Sutter medical center as disposed of and Warrack Campus is classified as ?held for sale?. harmonize to CICA Handbook section 3475 (.27), the transactions or events should meet two of the following conditions to qualify as discontinued operations:1.The operations a nd cash flows of the parting soak up been (or exit be) eliminated from on going operations of the enterprise as a lead of the disposal transaction2.

The enterprise will not have whatsoever significant continuing involvement in the operation of the component after the disposal transactionClassify as Discontinued OperationsDo not sort out 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 direct unit of Sutter Health. Moreover, their cash flows and financial elements are distinctly trenchant f rom the rest of the Sutter Health, since the! ir losses of $72 million sinning 1996 was figure 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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