Reporting Practice and Ethics Paper

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.

Financial Reporting

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 Commission, 2011). The third part of a cash flow statement shows the cash flow from all financing activities. It is very important for a organization to report their finances, since financial reporting will provide investors with information about the organization’s management. Financial reporting also provides information for all of management of their earnings and cash flow in which one can use future forecasting.

Ethical Standards

The Sarbanes Oxley-Act is often used for ethical situations and issues; however the Sarbanes Oxley-Act does not apply for nonprofit organizations. It is critical that all organizations use the Sarbanes Oxley-Act as the standard for good business practice and implement those sections that are within the capability of the organizations (Clarke, R. L., 2005). All employees I believe use good work ethics and standards in their organization and line of work and the ethical standards result in good reputation and standing of the organization. The actuary bears a significant responsibility in assuring that the methods, assumptions and processes used to determine certain financial statement balances adhere to regulatory and professional requirements (2004, Society of Actuaries).

Four Elements of Financial Management

The four elements of financial management...