Reporting Practice and Ethics
Reporting Practices and Ethics Paper
March 31, 2014
HCS/405
Instructor: Steven Larson
Reporting Practices and Ethics Paper
Financial Management Elements
There are four elements of financial management: planning, controlling, organizing, and decision making. When planning the financial manager identifies the steps that must be taken in order to accomplish the organization’s objectives. The purpose is to identify objectives and then identify the steps for accomplishing these objectives. Controlling is when the financial manager makes sure that each area of the organization is following the plans that have been established. Organizing involves deciding how to use the resources of the organization to most effectively carry out the plans that have been established. Decision making is when the financial manager makes choices among available alternatives.
Generally Accepted Accounting Principles General accepted accounting principles (GAAP) are the accounting rules used to prepare and standardize the reporting of financial statements, such as balance sheets, income statements and cash flow statements. GAAP-based income is measured so that the information provided on financial statements is useful to those making economic decisions about a company, such as potential investors and creditors. Basically, GAAP is concerned with the measurement of economic activity, the time when such measurements are to be made and recorded, and the preparation and presentation of summarized economic information in financial statements.
Standards of Ethics The conduct of a financial professional has a direct effect on the reputation of the profession. A good reputation is earned on a continuing basis by performing one’s business with competence, appropriate confidentiality, integrity, and by complying with applicable laws and regulations. Financial professionals have an obligation to their employers, co-workers, customers, shareholders, the profession
March 31, 2014
HCS/405
Instructor: Steven Larson
Reporting Practices and Ethics Paper
Financial Management Elements
There are four elements of financial management: planning, controlling, organizing, and decision making. When planning the financial manager identifies the steps that must be taken in order to accomplish the organization’s objectives. The purpose is to identify objectives and then identify the steps for accomplishing these objectives. Controlling is when the financial manager makes sure that each area of the organization is following the plans that have been established. Organizing involves deciding how to use the resources of the organization to most effectively carry out the plans that have been established. Decision making is when the financial manager makes choices among available alternatives.
Generally Accepted Accounting Principles General accepted accounting principles (GAAP) are the accounting rules used to prepare and standardize the reporting of financial statements, such as balance sheets, income statements and cash flow statements. GAAP-based income is measured so that the information provided on financial statements is useful to those making economic decisions about a company, such as potential investors and creditors. Basically, GAAP is concerned with the measurement of economic activity, the time when such measurements are to be made and recorded, and the preparation and presentation of summarized economic information in financial statements.
Standards of Ethics The conduct of a financial professional has a direct effect on the reputation of the profession. A good reputation is earned on a continuing basis by performing one’s business with competence, appropriate confidentiality, integrity, and by complying with applicable laws and regulations. Financial professionals have an obligation to their employers, co-workers, customers, shareholders, the profession
References: Refeaat, M. (2014). Financial Management of Healthcare. Retrieved From http://healthcaremanagementhelp.com/public/departments/file_43.pdf Paul, S. (September 2008). General accepted accounting principles: what does it mean?. Retrieved From http://www.legalzoom.com/business-management/running-your-business/general-accepted-accounting-principles-or IRS. (2014) Examples of Healthcare Fraud Investigations –Fiscal Year 2013. Retrieved from http://www.irs.gov/uac/Examples-of-Healthcare-Fraud-Investigations-Fiscal-Year-2013 Association for Financial Professionals. (2014). Standards of Ethical Conduct. Retrieved From http://www.afponline.org/pub/a/mem/ethics.html