Oil and Gas Accounting Test Review

Natural gas, and natural gas liquids which geological and engineering data demonstrate with reasonable certainty to be recoverable in future years from known reservoirs under existing economic and operating conditions Proved Developed Reserves- reserves that can be expected to be recovered through existing wells with existing equipment and operating methods. Proved undeveloped reserves- reserves expected to be recovered by new wells on underlined acreage, or from existing wells where a relatively major expenditure Is required for recompilation Phases Encountered In upstreamOperations Pre-license prospecting Geological evaluation of relatively large areas Mineral right acquisition/contracting Activities related to obtaining from the mineral rights owner the legal rights to explore, develop and produce OLL In a particular area Production sharing contracts- arrangement by which companies obtain rights from the government to explore, develop and produce Exploration Evaluation and apprais al Development Drilling additional wells necessary to produce the commercial reserves, constructing platforms and gas treatment plants, constructing equipment and facilities necessary or getting the oil to the gas for processing and constructing pipelines. Production Extraction and treatment. Closure CHAPTER 4 Pre-license prospecting and nondrying exploration Identifying areas that may contain oil and gas reserves US Successful efforts- G&G costs expensed as Incurred Entry: Db Expense car cash (before or after license calculations) overhead costs with G&G activities Successful efforts- expensed as incurred. Successful Efforts Geological and Geophysical costs must be expensed as incurred. Doesn't matter if costs are Incurred before or after the license Is acquired.G costs and contract counting If operation is conducted under Lease or concession agreement, it is unlikely that the contract would contain provisions that would permit cost recovery of these costs If the operation Is condu cted under a SC or risk service agreement, the contractor may be permitted to recover G related expenditures incurred after license acquisition and possibly G costs Incurred before license acquisition Support equipment and faculties depreciation or operating costs become an exploration, development or production cost, as appropriate. Entries: Db G expense -depreciation Car Accumulated Depreciation Db G expense-operating costs Car Cash Reprocessing Seismic How to account for cost of re-evaluation or reprocessing of the data? If the reprocessing relates to the search for oil then it should be accounted for according to SE provisions regarding prospecting and nondrying exploration costs. If the purpose is to determine how best to develop the reserves in the field, then they should be capitalized as development costs.License acquisition costs Costs of evaluating business environment, signature bonus, negotiating, etc should be capitalized Entry: Db Intangible assets-unproved property Ca r Cash Development and production bonuses If the payment is actually a deferred signing bonus, the appropriate accounting treatment is to capitalize the development bonus as a license acquisition cost. Accrue once the operations are apparently proceeding to the development phase. Entries: To record signature bonus: Db Intangible Assets – unproved property Car Cash To transfer unproved property costs to proved due to commercial discovery: Db Proved property Car unproved property To record accrual of production bonus: Proved property Car production bonus payable To record payment of production bonus: DbProduction bonus payable Car Cash Internal costs relating to acquisition Can allocate capitalized costs to individual licenses acquired, on an acreage basis or an a potential licenses basis Costs of carrying and retaining unproved properties Costs relating to maintaining unproved properties be charged to expense as incurred Ex: delay rentals paid on lease mineral properties until specified work is commenced, property taxes, accounting costs, legal costs Impairment of unproved property Impairment has occurred if there is some indication that the capitalized cost of an unproved property is greater than the future economic benefits expected to be derived from the property. Under SE, loss should be realized. Negative G data and dry holes would typically suggest that part of the property's historical cost has expired and impairment should be recognized Db Impairment expense Car Allowance for impairment FAST permits impairment of individually insignificant properties on a group basis. Apply the impairment percentage to the total cost of the group of individually insignificant unproved properties. This determines the desired balance in the allowance for impairment account. Next the difference between the current balance and the desired balance is recognized as impairment expense.Entry: Impairment Expense Car Allowance for impairment, group basis Abandonment of unp roved property Full abandonment: When an individually significant license area is abandoned, its net capitalized acquisition costs should be charged to surrender and abandonment expense Ex: Db Surrender and abandonment expense (equal to acquisition cost) Db Allowance for impairment (balance) Car unproved property Partial Abandonment or Relinquishment the future economic benefit of the property, then the entire property should be assessed for additional impairment. Unproved property classification An unproved property should be reclassified too proved property status if and when commercial reserves are discovered on the property. Ex: Db Tangible Assets- proved property (acquisition costs) Db Impairment Allowance (balance) Car In tangible assets- unproved property Sales of unproved property If the property was individually significant, a gain or loss should be recognized on the sale.Ex: Db Cash (sale price) Db allowance for impairment (balance) Db/Car(gain or loss) Car unproved proper ty If the property was individually insignificant, a gain would be recognized only if the selling price exceeds the original cost of the property. Loss recognition is not allowed. CHAPTER 5 Accounting for Exploratory Drilling and Appraisal Costs Under SE, general nondrying exploratory costs are to be charged to expense as incurred; exploratory drilling type costs are initially capitalized. Exploratory Well- well drilled to find and produce oil or gas in an unproved area to find a new reservoir in a another reservoir or to extend a known reservoir.Stereographic test well- drilling effort to obtain information pertaining to a specific geological condition. Exploratory type† if drilled in a proved area, â€Å"development type† if drilled in a proved area. Exploration well- well drilled to discover whether oil or gas exists in a previously unproved geological structure Appraisal well- well drill to determine the size, characteristics, and commercial potential of a reservoir by digging an exploratory well. Classifying Drilling costs Separate intangible drilling costs (DC) from equipment costs. IDS deducted in year incurred for US tax law. Equipment costs may be depreciated over 7-10 years. Besides tax purposes, distinction has no significance Targeted DepthWhen evaluating after drilling : if commercial reserves have been discovered, the drilling in progress account balances are transferred to another type of asset account that will be subject to depreciation The first successful exploratory well's cost will be reclassified from an unproved to a proved property account If well is unsuccessful, plug and abandon hole and charges these costs to dry hole expense, net any equipment salvaged from well. If the license area is also relinquished, the net carrying value must be written off. Capitalized G SE- G costs are to be charged to expense as incurred. Current methods may capitalize AD and AD seismic methods used to determine drill sites.Time Limit on explor ation and evaluation or appraisal costs In order for cost to be capitalized in SE, there must be identifiable future benefit. IF an exploratory well has found oil reserves in an area requiring major capital expenditure to be classified as proved. In this case, the cost of drilling the exploratory well shall continue to be carried as an asset as long as 1. The well has found a sufficient quantity of reserves to Justify its completion and 2. Drilling of the additional wells is under way or planned for the near future All other wells, shall not be carried as an asset for more than one year following completion of drilling Post- balance Sheet Period GAP provisions that relate to information about conditions that existed at the financial statements are issued.If well is determined dry, capitalized costs are written off to dry hole expense If commercial reserves are found, the capitalized drilling costs are transferred to the wells and equipment accounts All the capitalized costs of an ex ploratory well are typically reclassified as dry hole expense or as wells ND related equipment Cost approval, budget and monitoring APE- Authorization for expenditure CHAPTER 6 Drilling And Development Costs- US SE Development costs- costs incurred to obtain access to proved reserves and to provide facilities for extracting, treating, gathering and storing the oil and gas. More specifically, development costs, including depreciation and applicable operating costs of support equipment and facilities and other costs incurred to: Gain access to and prepare well locations for drilling, including surveying, draining, road building, etcDrill and equip developmental wells, including costs of platforms Acquire, construct and install production facilities such as lease flow lines, separators, etc Provide improved recovery systems Development well- well drilled within the proved area of an oil or gas reservoir to the depth of a stereographic horizon known to be productive Service well- comple ted for the purpose of supporting production in an existing field. Development type stereographic well- stereographic test well drilled in a proved area Capitalization of Development-Related G Exploration Costs Requires capitalization of G in development activities. Unless it is performed on a development land area but to an unknown structure- expensed. If ad seismic is being used to study the reservoir and perhaps where addition development wells should be drilled, theoretically the cost should be capitalized to the field as development cost.Overhead As a general rule, all G is expensed, however where the company has a defined method for allocation is permitted to capitalize these costs as part of development Capitalization of Depreciation of Equip and Facilities Depending on nature, costs can be expensed or capitalized Capitalization of Financing Costs Capitalization of Interest† requires that a portion of interest costs incurred during the construction phase of assets shoul d be capitalized as a part of the cost of the self-constructed asset. Interest capitalization only applies to qualifying assets: 1 . Assets that are constructed or otherwise produced for an enterprise's own use 2.Assets intended for sale or lease that are constructed or otherwise produced as discrete projects (ships or real estate developments) Amount to interest to capitalize- the portion of interest costs incurred during the period when the asset is being instructed that could have been avoided if the spending on the asset had not been made. Capitalization period shall begin when 3 conditions are met: Expenditures for asset have been made Activities that are necessary to get the asset ready for its intended use are in progress Interest cost is being incurred Sole Risk or Carried Interests If an asset requires a period of time in which to carry out the activities necessary to bring it to that condition and location, the interest cost incurred during that period as a result of expen ditures for the asset is a part of the historical cost of acquiring the asset. CHAPTER 9 Production Costs Costs of labor to operate the wells and related equipment and facilities Repairs and maintenance Materials, supplies, and fuel consumed and services utilized in operating the wells and related equipment and facilities Property taxes and insurance applicable to proved properties and wells and related equipment and facilities Severance taxes Depreciation, depletion and amortization Accounting for Production Costs All costs relating to production activities, including workers costs incurred solely to maintain or increase levels of production from an existing completion interval, shall be charged to expense as incurred.An expenditure that enhances original performance of the well should be capitalized Materials and supplies- capitalize if used in drilling or development. If used in repair or maintenance, they should be expensed. Recompilations- typically involve entering an existing well and deepening or plugging back in order to achieve production in a new formation or a zone in an existing formation. In a currently or previously producing formation or zone should be treated as an expense since the purpose is to restore production without an increase in commercial reserves If the objective is to develop reserves in a new urination or find new reserves, the activity would be new drilling. Drilling costs could be exploratory or development rather than production) Costs should then be capitalized or expensed depending on SE or FCC and on outcome of drilling Taxes (severance or production) should be expensed as production costs Crude Oil Production 1 Barrel = 42 gallons of oil at 60 degrees F API gravity (measure of density) of oil = the higher, the lighter the oil All crude contains BBS&W- basic sediments and water Disposition: outright sales, direct supply, indirect supply, exchanges, prefacers, or oil seed in operations Gas measurement Measurement in Mac is af fected by temperature. , pressure, compressibility, gravity etc Standard pressure is 14. 73 pounds per square inch at 60 degrees Fahrenheit Pre Acquisitions Acquisition Exploratory 0 Development 0 Production List the four Oil & Gas Agreements used on a worldwide basis and describe each one. 1 .US Domestic lease agreement- an oil and gas lease grants to the oil and gas company the right and obligation to operate a property. This includes the right to explore for, develop and produce oil and gas from the property and also obligates the many to pay all costs. (Company is a working interest owner). All costs, all risk. Agreement- encountered in operations outside the united states where the mineral rights owner is the local government. Sometimes the government is involved with a joint working interest. Payment of a bonus by the oil company to the government at the time the contract is signed. Payment of a royalty to the government. Responsible for paying all of the costs incurred in dev eloping. 3.Risk service agreement- oil companies reform workers aimed at restoring or stimulating production including application of current technology to currently producing fields. Bonus to national government at contract signing. Government retains ownership of reserve. Oil company incurs all costs and risks. Operating and capital costs incurred are recovered through payment of operating and capital fees. Government may participate in operations as a working interest owner. 4. Production Sharing contracts- companies obtain the rights from the government to explore for, develop and produce oil and gas. Company pays bonus to national government at contract date. Pays royalties to government. Government maintains ownership of reserves. Companies incur all risk and costs.Company required to spend a predetermined amount of money, which is recoverable from future production. 2. ) Describe the life cycle (Phases) of an Oil & Gas Project. Include the Accounting Treatment (ii. Successful Efforts or Full Cost Pool) for each phase. 1. Pre-license prospecting- geological evaluation of relatively large areas before acquisition of petroleum rights. Analyzing G&G data. Successful Efforts (SE) Method The Financial Accounting Standards Board (FAST) has issued FAST Statement No. 19 dealing with the successful efforts method. Under the SE method, costs incurred in searching for, acquiring, and developing oil and gas reserves are capitalized if they directly result in producing reserves.Costs which are attributable to activities that do not result in finding, acquiring, or developing specific reserves are charged to expense. The cost center for the SE method is a lease, field, or reservoir. The various types of costs are treated under the SE method as follows: 1 . Acquisition Costs: They are capitalized to unproven property until proved reserves are found or until the property is abandoned or impaired (a partial abandonment). If adequate reserves are discovered, the property is reclassified from unproven property to proven property. For tax purposes, acquisition costs are handled the same way except the cost cannot be partially written off as an impairment expense.The property must be abandoned before any cost may be written off. 2. Exploration Costs: They are recorded in two different ways, depending upon the type of costs incurred. A. Nondrying Costs: Examples of these type of costs are geological and geophysical (G & G) costs, costs of carrying and retaining undeveloped properties, and dry hole and bottom hole contributions. These types of costs are expensed as they are incurred. For tax purposes, nondrying costs are capitalized to the applicable b. Drilling Costs: They are treated differently depending on whether the well drilled is classified as an exploratory well or a developmental well. An exploratory well is a well drilled in an unproven area.A developmental well is a well drilled to produce from a proven reservoir. 1) If an exploratory well is a dry hole, the costs incurred in drilling the well are expensed. If the exploratory well is successful, the costs incurred in drilling the well are capitalized to wells and related equipment and facilities. ) The costs incurred in drilling developmental wells are capitalized to related equipment and facilities even if a dry hole is drilled. The costs associated with tangible well equipment and facilities are capitalized, regardless of the type of well drilled. For tax purposes, certain costs associated with such equipment are eligible for treatment as deductible ‘DC.Tax depreciation methods usually allow for a more accelerated rate of depreciation than book or financial depreciation. Also, book depreciation will be computed on 1-1 The developmental dry holes and IDS which are capitalized for book purposes but expensed for tax purposes. Therefore, an M-1 adjustment will be required on the difference between the amount of book and tax depreciation. 3. Production Costs: These c osts are expensed as incurred, which is the same treatment used for tax purposes. It should be noted, however, that many taxpayers erroneously expense overhead attributable to either acquisition or exploration activities as production costs.Overhead attributable to acquisition and exploration costs must be capitalized. 4. Depletion: This usually requires an M-1 adjustment. Although the cost depletion formula is the same for book and tax purposes, the mount for the basis used in the computation of cost depletion will vary due to the difference in capitalization. In addition, many taxpayers will be allowed to use a larger percentage depletion deduction Full Cost Method Under the FCC method, all costs incurred in exploring, acquiring, and developing oil and gas reserves in a cost center are capitalized. 1. Geological and geophysical (G & G) studies, successful and unsuccessful, are capitalized for book and financial purposes.For tax purposes, successful G & G costs are capitalized and unsuccessful G & G costs are expensed. An M-1 adjustment is required for the amount of unsuccessful G & G costs expensed. 2. Delay rental costs are capitalized for book and financial purposes. 3. 4. Exploratory dry hole costs are capitalized for book and financial purposes. For tax purposes, all dry hole costs (exploratory or developmental) are capitalized unless the taxpayer elects to expense them. Since most taxpayers expense these costs for tax purposes, an M-1 adjustment is required. 5. Impaired or abandoned property costs remain capitalized in the cost center for book and financial purposes.For tax purposes, no deduction is allowed unless a property is totally worthless. An M-1 7. General and administrative costs which are not associated with acquisition, exploration, and development activities are expensed. However, overhead that can be associated with acquisition, exploration, and development activities is capitalized. The costs are handled the same way for tax purposes. 8. D epletion usually will require an M-1 adjustment. In many instances, taxpayers may be able to claim a larger percentage depletion deduction in lieu of cost depletion. Even where cost depletion is claimed for book and financial purposes because of the different capitalization rules, the amount of cost depletion allowable will vary.

Recasting a Paragraph in the Past Tense Exercise

Recasting a Paragraph in the Past Tense Exercise This recasting exercise will give you practice in using the appropriate past-tense forms of regular and irregular verbs. Instructions The following paragraph has been adapted from Memorandum, an essay by E.B. White (One Mans Meat, 1944). Rewrite Whites paragraph, eliminating the phrase ought to wherever it appears and putting the italicized verbs in the past tense. Follow the example below. Example Original SentenceI ought to knock the wedges out from the frames of the pier, put a line on the frames, and tow them in on the high water.Sentence Recast in the Past TenseI knocked the wedges out from the frames of the pier, put a line on the frames, and towed them in on the high water. Memorandum I ought to take up the wire fence round the chicken range today, roll it up in bundles, tie them with six-thread, and store them at the edge of the woods. Then I ought to move the range houses off the field and into the corner of the woods and set them up on blocks for the winter, but I ought to sweep them out first and clean the roosts with a wire brush... I ought to add a bag of phosphate to the piles of hen dressing that have accumulated under the range houses and spread the mixture on the field, to get it ready for plowing... On my way in from the range I ought to stop at the henhouse long enough to climb up and saw off an overhanging branch from the apple tree. I shall have to get a ladder of course and a saw. When you have completed the exercise, compare your work with the revised paragraph below.​ Memorandum  (Recast in the Past Tense) I  took  up the wire fence  round  the chicken range today,  rolled  it up in bundles,  tied  them with six-thread, and  stored  them at the edge of the woods. Then I  moved  the range houses off the field and into the corner of the woods and  set  them up on blocks for the winter, but I  swept  them out first and  cleaned  the  roosts  with a wire brush... I  added  a bag of phosphate to the piles of  hen  dressing that  had  accumulated under the range houses and  spread  the mixture on the field, to get it ready for plowing... On my way in from the  range  I  stopped  at the henhouse long enough to climb up and saw off an overhanging branch from the apple tree. I  had  to get a ladder of course and a saw. Related Revision Exercises Recasting a Paragraph in the Past Tense II: From In the Heart of the Heart of the Country by William GassRecasting a Paragraph in the Past Tense III: From  Appalachian Wilderness  by Edward Abbey

Free Essays on Various Topics

1. Discuss the Characteristics of Developing Nations Some of the first things that come to mind when the term ‘developing nation’ is used are; backward, third-world, primitive, poverty, disease, unfortunate, and sheltered. All societies at one time or another in their existence were, in fact, considered developing nations, some develop at a faster pace than others and some seem rather stagnant in growth. There are many explanations as to why this occurs, the main determinants being cultural beliefs, including family life and ties, and economical and political ideals. Individually as well as geographically, people, tribes, families, and villages in developing, or traditional, societies are extremely distant. The text sites the main areas of deficiency in these particular societies; isolation, illiteracy, and distrust. With the lack of integration with others outside of their own group, it makes it impossible to have any differing beliefs brought about and in turn, different languages and cultures as well. You can see how this can cause a problem when one is finally faced with someone from a surrounding tribe. All of their life they have been taught that there is no other way than the way they are living, then they are blindsided with other languages and beliefs that they are not prepared to comprehend. This poses a problem for individual groups who reside in an area where there are other groups live nearby, and share a common ground of some sort for hunting or recreation of some sort, it can be a major cause of conflict. It is also noted that the combination of these issues has a snowballing result that follows; there is at first an inability to communicate with one another, which in turn brings suspicion, distrust, and detachment, which in turn brings further isolation, and causes the cycle to repeat itself over and over again. A vital makeup of life in a developing nation is a tribe or a village. Tribes are primari... Free Essays on Various Topics Free Essays on Various Topics 1. Discuss the Characteristics of Developing Nations Some of the first things that come to mind when the term ‘developing nation’ is used are; backward, third-world, primitive, poverty, disease, unfortunate, and sheltered. All societies at one time or another in their existence were, in fact, considered developing nations, some develop at a faster pace than others and some seem rather stagnant in growth. There are many explanations as to why this occurs, the main determinants being cultural beliefs, including family life and ties, and economical and political ideals. Individually as well as geographically, people, tribes, families, and villages in developing, or traditional, societies are extremely distant. The text sites the main areas of deficiency in these particular societies; isolation, illiteracy, and distrust. With the lack of integration with others outside of their own group, it makes it impossible to have any differing beliefs brought about and in turn, different languages and cultures as well. You can see how this can cause a problem when one is finally faced with someone from a surrounding tribe. All of their life they have been taught that there is no other way than the way they are living, then they are blindsided with other languages and beliefs that they are not prepared to comprehend. This poses a problem for individual groups who reside in an area where there are other groups live nearby, and share a common ground of some sort for hunting or recreation of some sort, it can be a major cause of conflict. It is also noted that the combination of these issues has a snowballing result that follows; there is at first an inability to communicate with one another, which in turn brings suspicion, distrust, and detachment, which in turn brings further isolation, and causes the cycle to repeat itself over and over again. A vital makeup of life in a developing nation is a tribe or a village. Tribes are primari...

Introduction to Marketing Essay Example | Topics and Well Written Essays - 2000 words

Introduction to Marketing - Essay Example Current paper focuses on the potential value of a specific framework of marketing, the marketing mix, to help a business operating in the British organic food industry, the Sea View Farm, to improve its performance. The fact that the business owners do not have experience on marketing practices should be taken into consideration when deciding on the marketing strategies that the firm would implement for securing its market position and for setting the basis for growth in the future. It seems that marketing could help the business to increase its performance but only under the terms that all the phases of the relevant plan will be closely monitored. The cooperation with a professional of the marketing industry would increase the chances for the success of the above initiative. 2. Overview of the current marketing mix and its importance to the organisation. In its most common form, the marketing mix includes four elements, also known as ‘four Ps’: product, place, price and promotion. These elements need to be reviewed and evaluated in order to decide on the marketing strategies that would be most appropriate for covering each organization’s needs. Relevant literature should be primarily reviewed. Marketing mix is a framework that has been established for covering specific marketing needs. In fact, these needs seem to be common in businesses in different industries (Doole & Lowe 2008). The marketing mix introduces four criteria that can be used for developing an effective marketing plan (Leadley & Forsyth 2004). One of the key advantages of marketing mix is its standardization (Lamb, Hair & McDaniel 2011). Indeed, firms that decide to use the specific approach need to focus on four elements, as included in the marketing mix, without having the potential to alternate or to replace these elements (Usman et al.2012). Of course, failures when implementing the specific approach are difficult to be fully avoided. In practice, it has been proved that the marketing mix has certain drawbacks, such as: a) the marketing mix is developed according to ‘the seller’s perceptions on market’ (Kotler & Armstrong 2010, p.77); b) it is partially opposed to the market rule that in the context of each market the interests of the consumer need to be primarily served (Czinkota, M. & Ronkainen 207). In fact, the marketing mix highlights the interests of the seller as being of equal worth with those of the buyer; c) the structure/ content of marketing mix cannot be effectively protected; competitors can develop similar marketing mixes for protecting their market position (Lamb, Hair & McDaniel 2011); d) marketing mix may not cooperate well with certain business strategies that are widely used for promoted products/ services worldwide; reference is made, as an example to the case of branding (Riaz & Tanveer 2011) and e) marketing mix may not be quite effective in markets with strong socio-cultural environments, where the influen ce of culture on ethics is quite strong (Keramati et al. 2012). The potential expansion of marketing mix, i.e. above the 4Ps, could possibly help to resolve the problems presented above (Goi 2009). In addition, it should be noted that in turbulent markets, the findings of the marketing mix would not be quite credible (Borden 1984). The market conditions would be changed regularly under the pressures of external forces; thus any assumption for the actual qualities/ potentials of

Film Art Essay Example | Topics and Well Written Essays - 1000 words

Film Art - Essay Example While Zombieland may exist in the kitsch horror genre, the film can be analyzed with the same critical tools as more artistic films. This essay examines a portion of Zombieland to consider the way elements of mise-en-scene, cinematography, editing, and sound combine to help the viewer understand the complete film. A film’s mise-en-scene is perhaps its most comprehensive element. Mise-en-scene is a French term referring to everything that appears on the screen.1 There are a number of prominent mise-en-scene elements in the clip from Zombieland. From an overarching perspective one considers that the entire film world has been altered as a means of establishing the post-apocalyptic environment. In this way there is minimal order. There are overturned cars in many scenes. Businesses are depicted as ransacked. In addition to these atmospheric elements, these scenes establish many of the narrative concerns that will be featured throughout the film. For instance, in one scene the mise-en-scene contains a football field, a man running, and a zombie running after the man. These elements are used to establish the importance of escaping zombies. In another scene the film displays an individual sitting on a bathroom stall. In this scene, mise-en—scene elements are combined with sound noises to create suspense and horror. A medium-range shot establishes the individual sitting in the bathroom stall. Loud zombie noises are then heard, before the individual is finally attacked by a zombie. Another major film element is cinematography. Cinematography is the movement of the camera capturing the film.2 This specific scene makes great use of cinematography. The opening shots feature an upside-down car. The camera is then turned upside-down as a zombie enters the screen. The next major scene is a long-shot the world. This long-shot of the world demonstrates to the viewer how large-scale the zombie problem has become, as it is clear that the

Certificate of Need (CON) Case Study Example | Topics and Well Written Essays - 1250 words

Certificate of Need (CON) - Case Study Example The CON is crucial in the clinical setting in that it evaluates the competing interests and boost economic value. Without the CON, it is evident that the health care environment would be a free market with open competition. Challenges would emerge when making decisions and expanding medical services. As an outside consultant, I seek to evaluate the diversity issues in this case study and their impact in the clinical setting. The advantage of this position is that it lays a strong ground to be open-minded when giving out the solutions on what should be done to enhance quality care. However, the main challenge is that one does not have the power to make decisions that affects the organization. With this, the chief administrator would be in a better position to oversee what is going on in the organization and implement decisions that enhance the organization’s success. Diversity Issues and their impact The case in consideration is the open heart surgery, which is a highly profita ble service that profits Pennsylvania. From 1996-1997 to 2007-2009, Pennsylvania increased the number of hospitals offering open heart surgery. Despite the progress made, the number of procedures made in the state decreased by 37%. The change attributed to less usage of clinical facilities, skilled surgical teams, and cardiothoracic surgeons. The issue was so severe that it contributed to the termination of three hospitals, which are Medical College of Pennsylvania, Episcopal Hospital, and Graduate Hospital. The main question that emerges from this case is why so many open heart programs would be launched despite the face of declining market. Major Problems and Issue In my opinion, open heart programs would be launched because they bring profit to the organization. As previously mentioned, open heart surgery is a highly profitable service that supports many hospitals. Nevertheless, opening many heart programs in the face of declining market would lead to economic depression. Most ho spitals may not be in a position to meet their financial goals and objectives. The machines used on these programs are costly. Thus, it is important to understand the market before launching or adding them. This would prevent economic problems that eventually may hinder the successful running of the organization (Jonas, & Kovner, 2011). Organizational Strengths and Weaknesses Although the new programs were justified to bring income, the truth of the matter is that there was no market analysis conducted prior to launching the programs. The organization fails to recognize the negative effects that would emerge from launching open heart programs in the face of the declining market. As documented in the case study, the change of these programs resulted into less efficient utilization of clinical facilities and highly skilled surgical teams. In other words, it affected the entire work performance and productivity of the organization. Because of economic depression caused by programs laun ched, the Philadelphia experienced a number of changed such as the closure of three known hospitals. Alternatives and Resolution To rationalize the number of programs in an open and free market I would embrace the CON in effort to increase the access of many hospitals to use the programs. The CON would help to improve quality in major health care services, and in turn this would boost the planning and resource development of the hospital. The services I would recommend this organization to embrace in the CON is preparing, revising, and reviewing rules and regulation for the analysis of medical services application. It is also important to conduct special studies and projects on the major k health issues with special improvement in the

Community Health Promotion Tool Essay Example for Free

Community Health Promotion Tool Essay Kimberly Thomas: Good Evening, I am Kimberly Thomas. I’m interviewing Hypertension what is a disorder that affects cardiovascular system. Let’s talk about the population and treatment for hypertension. There are a lot of medications for hypertension. What is hypertension? Where do you start for treatment? Hypertension: Hypertension is high blood pressure. Well, there are several medication treatments for hypertension. Most doctor start patients with hydrochlorothiazide (HCTZ), which is a diuretic. Diuretics are basically known as a water pill, which helps remove excess sodium and water from the body. Second most common medicine for hypertension is beta blockers. Beta blockers help the heart to beat a slower pace with less force. Again, there are several other medication treatments for hypertension, and your primary care physicians will discuss what options are best for you. Kimberly Thomas: Ok, thank you. Who are at risk of hypertension? Hypertension: There are some cultures that are more at risk than others. However, certain conditions and habits can put anyone at risk for high blood pressure. According to Hypertension (n.d.), â€Å"Its more common in African American adults than in Caucasian or Hispanic American adults.† African Americans tend to get high blood pressure early in life. Also, Puerto Rican adults have higher rates of hypertension than any other Hispanic group. Kimberly Thomas: Why do you think African Americans and Puerto Ricans are more at risk than any other culture? Hypertension: There are several factors why these two cultures are more at risk than other cultures. According to Hypertension (n.d.), â€Å"The main factor is the choice of food both cultures eat. Both cultures diet include too much salt.† Kimberly Thomas: Heredity is a factor correct? Can the individual manage some of the risk factors? Hypertension: Yes to both of your questions. There are a few things you can do to manage your high blood pressure. If you’re overweight, it’s highly recommend that you start exercising. Eat healthy food low in saturated fat, Trans fat, cholesterol and salt. Limit your alcohol intake, and stop smoking. Always, take medicine the way your doctor tells you. Kimberly Thomas: I absolutely agree with that. Kimberly Thomas: What about impact it has on cost? Hypertension: According to Hypertension (n.d.), â€Å"In 2010, high blood pressure was projected to cost the United States $93.5 billion in health care services, medications, and missed days of work.† Kimberly Thomas: How does hypertension impact the society? Hypertension: The number 1 cause of death in the United States throughout most of the 20th century. Unfortunately, whether the hypertension is treated or untreated, only 34% of Americans with hypertension have their blood pressure controlled to 140/90. An estimated 30 to 35 million Americans have uncontrolled hypertension, and are therefore at unduly increased risk of cardiovascular morbidity and mortality. Kimberly Thomas: I completely agree with you. I think the number one problem we still have today is that there are many people out there who are not being adequately treated. People who are denial of their problem, is unfortunate because there is help for them. Kimberly Thomas: Well, that’s all for today and Thank you for your time. References: Hypertension. (n.d.). Retrieved from http://www.cdc.gov/hypertension/faqs.htm http://www.mayoclinic.org/diseases-conditions/high-blood-pressure/basics/definition/con-20019580