Reporting Practices and Ethics Paper

Reporting Practices and Ethics Paper

Holly Polk

HCS/405

Sandra DiPietro

April 9,2012

Reporting Practices and Ethics

Financial management helps health care organization's to assist in balancing the inflows and outflows that are part of the business. There are about four recognized elements of financial management which are planning, controlling, organizing and directing, and decision making. Planning help the financial manager identify the steps that must be taken to complete objectives for their organization. Controlling helps the financial manager make sure that each area of their organization is following the plans that have been set before them. Organizing helps financial manager to decide how best to use resources and also how to effectively carry out plans that have been established. Lastly decision making helps financial manager to make choices among available option's (Baker, Baker,2011).

Generally Accepted Accounting Principles or ( GAAP) is a set of procedures, standards, and principles that a organization can all agree on in order to report their financial data. The GAAP has several components but we will only name the most important like debt, inventory cost, long-term and short- term investment, taxation, profits, stockholder's equity, revenues and sales, and goodwill and other intangibles. The GAAP is a very great way for organization to report the data and it is also the most consistent way to display data. The GAAP make it easier for companies to find what they need and also make it harder for companies to misrepresent their figures. If a company does not have a GAAP report then they should be should be on guard because that could be a sign that the company is trying to hide something that they don't want found. (Michael Fan, 2006).

Financial ethical standards consist of competence, integrity, and confidentiality. Competence is a key ethical standards that finance professionals should uphold according to organizations like...