Reporting Practices and Ethics Paper

University of Phoenix
HCS/405
Sandra DiPietro

Reporting Practices and Ethics
Introduction
Addressing financial reporting practices and ethical standards in health care finance can be done in various different ways. Either way this component of health care is addressed, it is important for a health care finance element, within an organization, to ensure that this is addressed correctly. A good way to explain and address the ethical standards in health care finance is by explaining the four elements of finance. These four elements include Planning, Controlling, Organizing, and Decision Making. With these four elements, addressing financial reporting practices and ethical standards in health care organizations, can be addressed, and will reflect how organizations accomplish this.
Accounting Principles In health care organizations, financial reporting involves financial statements. There are four main financial statements. They are: (1) balance sheets; (2) income statements; (3) cash flow statements; and (4) statements of shareholders’ equity (U.S. Exchange Commission, 2011). The third part of a cash flow statement shows the cash flow from all financing activities. It is very important for an organization to report their finances, since financial reporting will provide investors with information about the organization’s management. Financial reporting also provides information for all of management of their earnings and cash flow in which one can use future forecasting.
Ethical Standards The Sarbanes Oxley-Act is often used for ethical situations and issues; however, the Sarbanes Oxley-Act does not apply for nonprofit organizations. It is critical that all organizations use the Sarbanes Oxley-Act as the standard for good business practice and implement