Cleveland Clinic Health System Obligated Group - FMSbonds.com
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Cleveland Clinic Health SystemNotes to Consolidated Financial Statements (continued)3. Accounting Policies (continued)Foreign Currency TranslationThe financial position and results of operations of the System’s foreign subsidiaries are measuredusing the local currency as the functional currency. Assets and liabilities of operationsdenominated in foreign currencies are translated into U.S. dollars at exchange rates in effect atyear-end, while revenues and expenses are translated at the weighted average exchange rates forthe year. The resulting translation gains and losses on assets and liabilities are recorded in netassets.Other Nonoperating Gains and LossesOther nonoperating gains and losses in December 31, 2007 and 2006 include income or loss oninvestments accounted for using the equity method of accounting including alternativeinvestments. Additionally in 2006, the System recorded a loss of $4.8 million associated with arequired lease termination payment and a loss of $13.8 million associated with the purchase ofWeston Hospital (Note 2).ReclassificationsCertain prior year amounts have been reclassified to conform with the current year presentation,which had no impact on previously reported net assets. In previous years, the System’sinvestments were classified as nontrading. As such, unrealized gains and losses that wereconsidered temporary were excluded from excess of revenue over expenses. During 2007, theSystem determined that substantially all its investment portfolio was more accurately classifiedas trading, with unrealized gains and losses included in excess of revenue over expenses.Therefore, $68.9 million of unrealized investment gains previously recorded in unrestricted netassets in 2006 have been reclassified to nonoperating gains and losses. These reclassificationsdid not impact the total increase in net assets previously reported.16
Cleveland Clinic Health SystemNotes to Consolidated Financial Statements (continued)3. Accounting Policies (continued)Recently Adopted Accounting PronouncementsIn June 2006, the FASB issued Interpretation No. 48, Accounting for Uncertainty in IncomeTaxes, an interpretation of FASB Statement No. 109, (FIN 48), to create a single model to addressaccounting for uncertainty in tax positions (Note 10). FIN 48 clarifies the accounting for incometaxes, by prescribing a minimum recognition threshold a tax position is required to meet beforebeing recognized in the financial statements. FIN 48 also provides guidance on derecognition,measurement, classification, interest and penalties, accounting in interim periods, disclosure andtransition. The System adopted FIN 48 in 2007, as required.In September 2006, the FASB issued SFAS No. 158, Employers’ Accounting for Defined BenefitPension and Other Postretirement Plans, an amendment of FASB Statements No 87, 88, 106 and132(R) (SFAS No. 158). SFAS No. 158 requires plan sponsors of defined benefit pension andother postretirement benefit plans (collectively, postretirement benefit plans) to recognize thefunded status of their postretirement benefit plans in the balance sheet, measure the fair value ofplan assets and benefit obligations as of the date of the fiscal year-end and provide additionaldisclosures. On December 31, 2007, the System adopted the recognition and disclosureprovisions of SFAS No. 158 (Note 12). The effect of adopting SFAS No. 158 on the System’sconsolidated balance sheet at December 31, 2007, has been included in the accompanyingconsolidated financial statements. SFAS No. 158 did not have an effect on the System’sconsolidated financial position at December 31, 2006. Additionally, SFAS No. 158 eliminates theearly measurement date provision of SFAS No. 87. The requirement to measure the plan assetsand benefit obligations as of the fiscal year-end is effective for fiscal years ending afterDecember 15, 2008. The System will adopt the change in measurement date in 2008.17
- Page 87 and 88: The main campus also includes a com
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- Page 91 and 92: E. UTILIZATIONThe following tables
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- Page 173 and 174: APPENDIX CSUMMARY OF BASIC DOCUMENT
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- Page 177 and 178: “Bond Indenture” means the Bond
- Page 179 and 180: period of three months from the com
- Page 181 and 182: PROPERTY”, and all improvements,
- Page 183 and 184: direct, express or charitable trust
- Page 185 and 186: Rate Hedge” for purposes of this
- Page 187 and 188: Debt according to a fixed schedule
<strong>Cleveland</strong> <strong>Clinic</strong> <strong>Health</strong> <strong>System</strong>Notes to Consolidated Financial Statements (continued)3. Accounting Policies (continued)Recently Adopted Accounting PronouncementsIn June 2006, the FASB issued Interpretation No. 48, Accounting for Uncertainty in In<strong>com</strong>eTaxes, an interpretation of FASB Statement No. 109, (FIN 48), to create a single model to addressaccounting for uncertainty in tax positions (Note 10). FIN 48 clarifies the accounting for in<strong>com</strong>etaxes, by prescribing a minimum recognition threshold a tax position is required to meet beforebeing recognized in the financial statements. FIN 48 also provides guidance on derecognition,measurement, classification, interest and penalties, accounting in interim periods, disclosure andtransition. The <strong>System</strong> adopted FIN 48 in 2007, as required.In September 2006, the FASB issued SFAS No. 158, Employers’ Accounting for Defined BenefitPension and Other Postretirement Plans, an amendment of FASB Statements No 87, 88, 106 and132(R) (SFAS No. 158). SFAS No. 158 requires plan sponsors of defined benefit pension andother postretirement benefit plans (collectively, postretirement benefit plans) to recognize thefunded status of their postretirement benefit plans in the balance sheet, measure the fair value ofplan assets and benefit obligations as of the date of the fiscal year-end and provide additionaldisclosures. On December 31, 2007, the <strong>System</strong> adopted the recognition and disclosureprovisions of SFAS No. 158 (Note 12). The effect of adopting SFAS No. 158 on the <strong>System</strong>’sconsolidated balance sheet at December 31, 2007, has been included in the ac<strong>com</strong>panyingconsolidated financial statements. SFAS No. 158 did not have an effect on the <strong>System</strong>’sconsolidated financial position at December 31, 2006. Additionally, SFAS No. 158 eliminates theearly measurement date provision of SFAS No. 87. The requirement to measure the plan assetsand benefit obligations as of the fiscal year-end is effective for fiscal years ending afterDecember 15, 2008. The <strong>System</strong> will adopt the change in measurement date in 2008.17
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