StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...

Generally accepted accounting principles relating to health care - Essay Example

Cite this document
Summary
Generally Accepted Accounting Principles Relating to Health Care The Concept of GAAP Generally Accepted Accounting Principles (GAAP) are fundamentally regarded as a standard framework and guiding principles of financial reporting, as well as accounting process…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER94.1% of users find it useful
Generally accepted accounting principles relating to health care
Read Text Preview

Extract of sample "Generally accepted accounting principles relating to health care"

Download file to see previous pages

The standards relating to GAAP have been recognized to be executed by different organizations while compiling their respective financial reports. In general, GAAP is a broadly used accounting procedure of reporting and recording financial information. The accounting standards that have been outlined within the GAAP are “generally accepted” by the Governmental Accounting Standards Board (GASB). The mission of GASB is to build and develop the financial reporting standards at the level of local governments and state units (Taylor, 2008).

Purpose of GAAP The main purpose of GAAP is to represent the financial report that can significantly reflect the financial position of a particular organization. GAAP provides effective support to the organizations in terms of enhancing their capability within the framework of long-term financial decision making process that eventually enables the organizations to accomplish their predetermined financial objectives. Moreover, the other imperative purpose of GAAP is to enhance the performance of the business organizations through properly maintaining their financial records (Office of Financial Management, 2012).

From the perspective of healthcare industry, GAAP performs a major role through delivering transparent financial statements that encompasse all the financial activities of the healthcare organizations. An effective practice of GAAP tends to facilitate the modern healthcare firms and forecast their future financial performance. Proper implementation of GAAP in the financial reporting process can enable an organization to attain competitive position within the growing healthcare industry (Office of Financial Management, 2012).

Oversight of Use of GAAP The different standards or the accounting principles belonging to GAAP can be considered as the set of guiding principles that provide effectual accounting solutions for any organization while preparing financial statements. In order to gain a superior oversight regarding the use of GAAP, it has been identified that the accounting principles concerning GAAP tends to comply with traditional and rule-based methods in representing the financial statements of various organizations.

With regard to asset valuation process, GAAP tends to follow historical cost of the assets rather than focusing on fair value of the assets that depicts fair treatment of the items in the financial statements (Rascona, 2011). Description of Each Principle and the Intention behind the Principles of GAAP GAAP mainly contains five types of principles that ensures towards establishing a well-structured financial report which determines the financial stability of a specific organization. The various principles of GAAP relating to healthcare organizations have been discussed hereunder.

Going Concern Principle The principle of going concern represents the fact that the healthcare organizations will tend to operate their respective business functions in such way so that they can prepare a balanced and well-structured financial statement. Identifying any types of uncertainties in the business processes it has to be noted that going concern needs to be updated in financial reports through rationalizing different standards or the accounting principles belonging to GAAP (Financial Reporting Council, 2009).

Matching Principle The matching principle of GAAP defines as a process of recording each item of expense in relation to revenue that must be recorded in

...Download file to see next pages Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Generally accepted accounting principles relating to health care Essay”, n.d.)
Generally accepted accounting principles relating to health care Essay. Retrieved from https://studentshare.org/nursing/1468290-generally-accepted-accounting-principles-relating
(Generally Accepted Accounting Principles Relating to Health Care Essay)
Generally Accepted Accounting Principles Relating to Health Care Essay. https://studentshare.org/nursing/1468290-generally-accepted-accounting-principles-relating.
“Generally Accepted Accounting Principles Relating to Health Care Essay”, n.d. https://studentshare.org/nursing/1468290-generally-accepted-accounting-principles-relating.
  • Cited: 0 times

CHECK THESE SAMPLES OF Generally accepted accounting principles relating to health care

The Process of Rating Agencies

Analyze the impact of the attention rates on both short -term and long term debt plus how health care organization might best leverage your psychiatry.... Short and long terms debts on health care may result to the devastation of the health cares (Sherman, 2011).... Discuss the likelihood of a non-for -profit health care association issuing supply and why the management of such an association might want to do this.... Without imaginative repackaging of the contemplation of prepaid health tactics, the appearance and timing of the conventional response to the immoderation of the medical institution would almost definitely have been quite diverse (Bangemenn, 2005)....
4 Pages (1000 words) Essay

Principles of Practice Management

The organisation significantly involves numerous setting that encompasses different healthcare needs of the global clients including acute care setting along with primary in-patient care, ophthalmology and long-term healthcare facilities.... The managers in the acute care setting play a pivotal role for NHS in terms of practicing healthcare services.... Principles of Practice Management Table of Contents Introduction 3 Case Scenario Report 4 Roles of Managers in Selecting and Developing Suitable Healthcare Practice Environment 5 Need for Effective Marketing and Promotion of the Healthcare Practices 6 Brokerage Issues in the Buying and Selling of Healthcare Services 7 Essentials of Starting a Practice to Meet the Healthcare Needs for a Group of Clients 8 Conclusion 11 References 12 Bibliography 16 Component-2 17 Introduction 17 Important health and Safety Regulations and Requirement in Running a GP Practice 18 Requirements 19 Aspects of Financial Viability 20 Aspects of Operational Management 20 Methods Used for Optimising Service Configurati… on for General Practice 21 Performance Measurement 22 Financial and Operational Principles in Managing Healthcare 23 Role of Manager in GP Practice 24 Leadership Theories 24 Conclusion 26 References 27 Component-1 Introduction Marketing can be considered as a benevolent set of practices that often adopts as well as executes by an organization in terms of generating greater value to its different customer groups....
19 Pages (4750 words) Essay

Stigmas and Social Issues Connected with Mental Health

While many of the stigmas and social issues connected with mental health have been overcome by society, a lot remains to be done before we can arrive at a position that provides optimal care for mental health patients without stigmatising them or lowering their worth.... Mental health issues have been around us as long as there has been a semblance of civilisation.... (Crabtree, 2003). Happell (2005) describes an incident, during which she experienced a derogatory remark for a patient suffering from mental health issues....
20 Pages (5000 words) Essay

The Evolution of Financial Reporting in Kuwait

accounting systems are designed to create a climate of fair and honest transactions.... Such regulations are particularly important with the rise of corporations and the separation of management and ownership where proper accounting attests to the credibility of the financial data.... Explicit authority was given to the Registrar of Companies in Kuwait to regulate accounting.... In this way, the Registrar can control the quality of domestic accounting....
26 Pages (6500 words) Essay

The Role of Ethics in Professional Accounting

hellip; Like every other professional field, professional accounting is governed by a set of principles which guide the accountant in the performance of his/her task(s).... These principles are inscribed in the context of a code of ethics which rules the behavior of the professional and sets up a code of conduct which regulates behavior in the field.... The success of a business depends largely on its accounting.... The role of accounting in a business can be compared to the role the vertebral column in an organism....
23 Pages (5750 words) Essay

Corporate Governance and Ethics

Appraise Whether These Disclosures Demonstrate That the Agency Problem Is Reduced 7 Corporate governance and ethics are considered essential… Compliance with the corporate ethics and government code are vital functions of the top management level, which assists them in taking important decisions....
21 Pages (5250 words) Assignment

Corporate Governance and Enron Case

According to the report given by Kirk Hanson, the executive director of Markkula, a center for Applied Ethics, the Enron management did not give true information concerning the company's health (Canadian Center of Science & Education, 2010).... These stakeholders include the management, shareholders, suppliers, customers,… The corporate governance principles provide guidelines on how to control a company to ensure that its objectives are fulfilled in a way that is beneficial to the company and adds long-term value to the interests of the In corporate governance, the company's management takes a trustee's role for other parties that have interests in the company....
13 Pages (3250 words) Essay

Cash Accounting vs. Accounting

Most companies prepare their financial statement in conformity with generally accepted accounting principles that advocate accrual basis of accountancy.... hellip; The author states that cash is considered bloodline for a business and that is why cash inflows and cash outflows are treated with utmost care.... The paper “Cash accounting vs.... accounting” focuses on a form of reporting the business and other transactions....
16 Pages (4000 words) Research Paper
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us