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Which may cause it a problem when seeking donations

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Several young doctors started a small not for profit out patient type hospital in a poor neighborhood in their spare time. Because the doctors received their education free from the state in the form of scholarships, they plan to work at the hospital without pay. The chief administrative officer does not believe that the value of the donated services should appear in the financial statements of the hospital. The comptroller feels that the conditions under which the services were donated require that they be recorded. The CEO feels that if the revenue associated with the services is recorded, it will look like the hospital has a great deal more revenue than it actually has, which may cause it a problem when seeking donations and grants. The doctors do not want the value of their services recorded. How would you respond to this situation?

Reference no: EM13873823

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