Reporting Practices and Ethics Essay

816 Words Feb 24th, 2014 4 Pages
Reporting practice and ethics paper
Latrice Robertson
Hcs/405
February 3, 2014
Sherida Douglass

Reporting practice and ethics paper
It is the responsibility of a health care manager to understand the basic principles of accounting and finance, and have the knowledge and the understanding of a financial report and what it means. Without these skills and ethical standards it could result in poor management. Financial management is a vital part of organizational effectiveness and success.
Financial management requires four elements in order to operate properly. The four elements of financial management:
Planning- the financial manager identifies the steps that must be taken to accomplish the organizations objectives. The
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Sincerity: accounts should be truthful and accurately express the true financial stability of their clients. Permanence of methods: financial information and the methods must be clear and coherent. Non. Compensation: all financial information must be present, therefore a negative can not be compensated by a positive, prudence: accounts shouldn’t list financial data based on probability or assumption. Continuity: over time assets values change. Periodicity: revenue should be allocated over the entire spoon of income/expenditure and not on the final date. Full disclosure and materiality: everything financially related to the business must be presented in the records (financial/dictionary.net, 2013).
In today’s business, individuals in management accounting and financial management constantly face ethical dilemmas. Individuals in management accounting and financial management have a unique set of circumstances relating to their employment ( www.easternct.imanet.org, 2014). A good reputation is earned by continuous performing with competence, appropriate confidentiality, integrity, and by complying with laws and regulations. Financial professionals are obligated to their employers, co-workers, customers, shareholders, the profession and themselves to maintain and conduct high ethical standards. Practitioners of management accounting and financial management have a responsibility to,

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