Financial Reporting Practices

Topics: Health care, U.S. Securities and Exchange Commission, International Financial Reporting Standards Pages: 4 (1104 words) Published: September 24, 2011
Financial Reporting Practices

Financial Reporting Practices

Health Care Financial Accountin
September 7, 2011

Ethical standards in financial reporting are essential. Tools have been set in place to ensure that this takes place. Some of these tools are agencies that have been established, elements of financial management, and Generally Accepted Accounting Principles.

Several administrative agencies have been established to strive to create a more standardized and ethical standard within the financial practices. These agencies are the United States Securities and Exchange Commission, the Financial Accounting Standard Board, and the Public Company Accountant Oversight Board. The Securities and Exchange Commission was established in 1934. It was necessary to be able to guarantee that the market would be stabilized and protected.

There are four elements of financial management. The elements of financial management are planning, controlling, organizing and directing, and decision making. Each step is part of a role that the financial manager must take in order to ensure the success of the business. In planning objectives that are laid out by the organization are identified. This allows for a clear path to be established that all will follow. Controlling is the part where the financial manager ensures that the objectives set forth are followed. A financial manager must manage the resources of the organization. This is referred to as organizing and directing when looking at the four elements of financial management. Finally decision making occurs. This is not the final step as it is more something that needs to be continually executed throughout and in conjunction with the other elements of financial management. Simply put it is where all choices start by being informed. The four elements of financial management are important and serve a necessary purpose.

There are multiple Generally Accepted Accounting Principles often abbreviated...
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