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Reporting Requirements Memo - Essay Example
Finance & Accounting
Pages 5 (1255 words)
Memo for accounting reporting requirements for a small county hospital and a private not-for-profit nursing home Memorandum To: From: Subject: Accounting Reporting requirements Date: January 09, 2013 This memo deals with the two projects that our firm is currently bidding…
The memo ends with the comparison of the accounting reporting practices of the two entities. Reporting requirements for private sector, not-for-profit organizations under Financial Accounting Standard Board guidance The Financial Accounting Standard Board has specific accounting reporting requirements for all types and kinds of health care organizations. This also includes the private sector not for profit nursing homes. The Financial Accounting Standard Board have issued several standards especially for private not for profit nursing homes. Few of the standards that have been introduced are “Accounting for Contributions Received and Contributions Made,” “Financial Statements of Not-for-Profit Organizations” and “Accounting for Certain Investments Held by Not-for-Profit Organizations”. The American Institute of Certified Public Accountants’ (AICPA’s) accounting and audit guide for Health Care Organizations have made these statements mandatory. Both AICPA and FASB promote the accrual method of accounting. An accrual method accounting gives a complete, accurate and meaningful report about the financial condition of the organization. The accounting period should span for one year. ...