Reporting Practices and Ethics

Reporting Practices and Ethics Paper

HCS/405

Reporting Practices and Ethics Paper

In the health care environment financial practices and ethical care finance are essential to produce successful organizations. Reporting practices and ethics is part of the foundation for many successful businesses. Business ethical and financial practices are adopted by the health care industry and other types of organizations to increase the organization’s value and consumer confident as well as protect the services or products offered by the organization while maintaining the integrity of the organization. This paper will provide a summary of generally acceptable accounting principles and general financial ethical standards, summary of the four elements of financial management, explain the importance of understanding the financial and ethical practice in the health care industry to avoid fraud and illegal accusations as well as standards and conduct in health care finance.

General Accepted Accounting Principles (GAAP)

Health care organizations have a valuable program that implement code of ethics and best practice concepts, which is used for the interpretation of company transactions , asset losses, and other accounts, in addition to financial reports and statements. General accepted accounting principles (GAAP) are a set of standards used by companies to record financial information for an organization. GAAP’s are also used to report finances and record financial statements (Maghaun, 2011). The main purpose of GAAP is to ensure financial standards are met and financial statements are prepared correctly. GAAP are based on several principles and must its rules and regulations should be followed by organizations who want to keep consumer confident. The four principles of GAAP are consistency, relevance, reliability, and comparability. Consistency means the information shall be collected and reported in the same manner every time. Relevance means the information...