2003-253P. - Laserfiche WebLink

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Indian River Memorial Hospital , Inc. and Subsidiaries Notes to Consolidated Financial Statements For the Years Ended September 30 , 2002 and 20) 1 Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The more significant areas subject to management estimates include estimated third-party payor settlements, reserves for professional liability and workers' compensation claims and allowances for patient receivables. Actual results could differ from those estimates. Cash and Cash Equivalents Cash and cash equivalents include investments in highly liquid instruments with original maturities of three months or less when purchased, excluding amounts limited as to use by arrangements under trust agreements or with thirdparty payors . Investments Investments consist of amounts invested in common stocks, U. S . Government Agency obligations and short-term pooled fixed income funds, corporate obligations, temp6rary - - investments, certificates of deposit and accrued interest receivable with original maturities when purchased- of greater than three months. Investments are recorded at fair value, based on quoted market prices, in the consolidated balance sheets. Investment income or loss, Itwhich includes realized gains and losses on investments and interest and dividends is included mi (deficit) excess of revenues over expenses unless the income or loss is restricted by donor or law. Unrealized gains and losses are excluded from (deficit) excess of revenues over expenses . Inventories Inventories, consisting principally of medical and pharmaceutical supplies, are stated at the lower of cost or market. Cost is determined on the basis of the FIFO (first in = first out) method. Assets Limited as to Use or Restricted The Board of Directors has designated certain funds for capital additions and for its self- insured program for health insurance claims . These funds are invested in common stocks, U. S . Government Agency obligations and- short-term pooled fixed income funds, corporate obligations, temporary investments, certificates of deposit and accrued interest receivable. The investments are carried at fair value in the accompanying consolidated balance sheets . Realized earnings on investments designated for capital additions and health insurance claims are classified as investment income. -9 .