Reporting Practices and Ethics Paper
University of Phoenix
January 13, 2011
Reporting Practices and Ethics
This paper addresses financial management of health care organizations and integrates research articles. I will address financial reporting, ethical standards, and four elements of financial management. Moreover general accepting accounting principles and ethical standards will be discussed.
In health care organizations, financial reporting involves financial statements. There are four main financial statements. They are: (1) balance sheets; (2) income statements; (3) cash flow statements; and (4) statements of shareholders’ equity (U.S. Exchange ...view middle of the document...
Four Elements of Financial Management
The four elements of financial management are; (1) planning, (2) controlling,
(3) organizing and directing, and (4) decision making. Planning consist of the finance manager identifying and knowing the organizations objectives and planning the steps to accomplish the objectives. Controlling is where the manager studies current and past reports and compares the reports. The manager then uses the reports as feedback and makes sure all plans are being followed accordingly. Organizing and directing involves the decision of the manager on how to use resources of the organization. When the decision is made by the manager then daily supervision is done ensuring effective resource usage. Decision making is done by analysis and evaluation of the manager’s information, therefore resulting in making informed choices or decisions.
Generally Acceptable Accounting Principles
Generally acceptable accounting principles are used in financial reporting to provide information for third- party use and must be within accordance. The term "generally accepted accounting principles" has a specific meaning for accountants and auditors (FASB, 2011). In the report it is expected that one separates the unrestricted balance from the restricted balance on the statement. Federally licensed companies must comply with the Insurance Companies Act on financial reporting. Most employees who work in finances and accounting use generally accepted accounting principles because the guidelines are helpful. There are a lot of things in place that allow independence. So the...