(Accounting standards-setting bodies) Three accountants started talking about hospitals. One said he was treated at a not-for-profit hospital, another said she was treated at a county hospital, and the third said he had just returned from the hospital run by the U.S. Veterans Administration. They wondered why three different bodies established accounting standards for hospitals. Give reasons for and against the existence of three accounting standards-setting bodies.

Question

Reed · Answer

It's all based on the tax code (U.S. law):

http://en.wikipedia.org/wiki/Non-profit_hospital

http://en.wikipedia.org/wiki/Public_hospital

While the rules are similar for state/local (county) organizations, the VA is a federal agency, so has different rules.