StudentShare solutions
Triangle menu

Generally accepted accounting principles relating to health care - Essay Example

Nobody downloaded yet

Extract of sample
Generally accepted accounting principles relating to health care

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 ...Show more


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…
Author : rocky77
Generally accepted accounting principles relating to health care
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the essay on your topic
"Generally accepted accounting principles relating to health care"
with a personal 20% discount.
Grab the best paper

Check these samples - they also fit your topic

Accepted Accounting Principles related to Health Care
The motive of financial accounting is to provide financial information, generally historic in nature, to both internal and external users including owners, lenders, suppliers, employees and to the government and other insurers. In the field of accounting there are Generally Accepted Accounting Principles or GAAP that set the rules for financial statements.
3 pages (750 words) Essay
Generally Accepted Accounting Principles Paper
The research delves on the reasons for the strict implementation of the United States Generally Accepted Accounting Principles. United States Generally Accepted Accounting Principles implementation enhances the financial statement users’ decisions. Generally accepted accounting principles can be applied to the all entities, including the healthcare environment (Black, 2009).
4 pages (1000 words) Essay
The Generally Accepted Accounting Principles in the UK
The Generally Accepted Accounting Principles in the UK, or UK GAAP, are the overall body of regulation establishing how company accounts must be prepared in the United Kingdom. This includes not only accounting standards, but also UK company law. Accounting standards derive from a number of sources.
10 pages (2500 words) Essay
Generally Accepted Auditing Standards
This piece of research work presents nature and functions of auditing and addresses various elements of GAAS. It also details Sarbanes-Oxley Act and its impacts on general auditing practice According to Arens, Elder and Beasley (2006), Auditing
3 pages (750 words) Essay
Generally Accepted Auditing Standards (GAAS)
Quality of accounting standards forms the basis for the well functioning of a market system that features the institutional capitalism such as that of United States. This perforce requires that not only financial
4 pages (1000 words) Essay
Accepted Accounting Principles related to Health Care
These rules were established by the Financial Accounting Standards Board. The first principle is the entity concept which is the group or organization such as a hospital, medical school, or nursing
3 pages (750 words) Essay
Principles of Health and Social Care Practice

The author states that promoting anti-discriminatory practice is very important because cities are becoming more ethnically diverse and multicultural. Person information confidentiality is a right of each individual including service users. It is a legal requirement within the data protection to keep confidentiality of the personal records.

17 pages (4250 words) Essay
Generally Accepted Auditing Standards Paper
In Mobitech Accessories Ltd, auditing is crucial as it increases the value and credibility of the management’s financial statements to the users, reduces investor risks, and
2 pages (500 words) Essay
Generally Accepted Accounting Principles
All profit making organizations have an obligation to collect, summarize, and communicate its financial information. They do so by preparing financial statements used internally and externally by various users. The information presented in these financial statements should present the true and fair view of the company in a clear and concise manner for the entity and other external users.
6 pages (1500 words) Essay
Generally Accepted Accounting Principles
The conformance to the International Financial Reporting Standards, rules and conventions under GAAP leads to recording, summarization and reporting of financial statements that are comparable in international
2 pages (500 words) Essay
Comments (0)
Click to create a comment
Let us find you another Essay on topic Generally accepted accounting principles relating to health care for FREE!
Contact us:
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
Join us:
Contact Us