Reporting Practices and Ethics Paper

Reporting Practices and Ethics Paper

One of the most important aspects of financial planning in health care is financial management. During day to day operations in health care many financial decisions are made ranging from accounting records to various business transactions which occur. Some are the decisions made according to the organizations fiscal objectives although some are made on generally accepted accounting principles.

The generally accepted accounting principles (GAAP) are considered as the framework of guidelines for the financial accounting and jurisdiction of all accounting standards. Included in the GAAP accounting standards are the guidelines for copying and summarizing transactions when preparing financial statements. When third parties have to be involved with the reports GAAP standards should be followed to ensure that all information is accurate and unbiased. All business states that, “generally accepted accounting principles are guidelines precisely, are a group objectives and conventions that have been set up permanently over time to set how financial statements are prepared and presented (FASAB, 2010). When a health care organization has any type of dealing with financial data it is important that all data be within the guidelines of GAAP so that there is no room for creditors to have difficulty reading their financial statements.

In all groups composed there is a corporate ethics committee or a set number of employees who work together to deal with the ethics of the organization. Since it is a fact that all organizations are different the behavior of the organization is based on the ethics within the organization. Most organizations focus on the organizations surroundings, social and human rights, and responsibilities when looking at what emotions the ethics have within the organization. The GAAP standards are combined into all corporations’ ethic policies and have reference to the way they handle all their financial guidelines cut out...