Health Care Case Study: Financial Statements Hcs/405 Essay

999 Words Oct 29th, 2011 4 Pages
Financial Reporting and Ethical Standards
Debra Castagnetta
November 7, 2011
Todd Brown

Financial Reporting Practices and Ethical Standard In health care finance keeping financial documents have become more detailed and the need for accuracy has increased and many guidelines have been established to ensure there are competencies, and ethical standards are upheld in financial management in health care organizations (Paul, 2008).
The Four Elements of Financial Management Health care organizations and other organizations require an array of management actions to operate effectively (Baker & Baker, 2010). To accomplish these actions the four elements of financial management must take place. The financial
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The U. S. Securities and Exchange Commission (SEC) requires publicly traded organizations and other regulated organizations to follow the GAAP for financial reporting (Paul, 2008). While smaller organizations are not mandated to use the GAAP, except for certain circumstances, an example obtaining credit or seeking investors (Paul, 2008). The GAAP concentrate on measuring the financial activity, the time when the measurements should be documented, the disclosure surrounding the activity, and the preparation and presentation of the summarization of the information in financial statements (Paul, 2008).
Ethical Standards in Financial Reporting Several administration agencies strive to create a more standardized and ethical standards in financial practice, such as the U. S. Securities and Exchange Commission (SEC) the Financial Accounting Standard Board (FASB), and the Public Company Accountant Oversight Board (Morneau, 2008). SEC was established in 1934 to ensure the stability of the market to protect investors and to ensure that organizations disclose their accurate financial information (Morneau, 2008). The FASB, work generally with the private sector to establish standards that regulates financial accounting and reporting (Morneau, 2008). The PCAOB establish auditing procedures and verification standards, and quality

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