Reporting Practices and Ethical Standards Essay
Financial reporting and the ethical standards that coincide are important aspects of any health care organization. Health care facilities must report financial statements accurately and fairly. Reported financial data has a huge impact on stakeholders such as investors, patients, vendors, and employees. Health care finance managers should be well versed in the four elements of financial management, generally accepted accounting principles (GAAP), and ethical financial standards to ensure acceptable financial practices as well as the sustainability of the organization.
Four Elements of Financial Management
During the planning process, a financial manager uses the organization’s objectives to …show more content…
Generally Accepted Accounting Principles and Ethical Standards
In financial management, a mutual set of accounting criteria is used to develop a health care organization’s financial statements and is known as generally accepted accounting principles (GAAP). GAAP are a mixture of respected guidelines created by the Securities and Exchange Commission (SEC) and the accounting profession. It is important to mention that there are provisions to the GAAP that directly affect the health care industry. More specifically, health care organizations are required to change the way they report bad debts, disclosures of patient service revenue, and present qualitative and quantitative data in regards to allowances for doubtful