...to understanding finance is learning the four elements of financial management and their relationship to one another. It is important that all financial records are up to date because this helps keep track of how an organization, so they know if they have a profit or a loss. There are four elements of financial management are planning, controlling, organizing and decision making. The first one is planning it allows an organization to set goals and guidelines to ensure success and accomplishments in set goals. The second element of financial management is controlling. Controlling allows an organization to ensure that all rules and regulations within the organization are being followed. The third element of financial management is organizing. Organization is important because it guarantees that the organization is working at its best and it is organized while directing the medical office to work and fix problems that may come. The last element of financial management is decision making. All decision relies on information, and evaluation. Decision making works along with the planning, controlling and organizing by gathering information and helping to make a decision. Financial management is important in healthcare financial plans. Companies can not function without the proper financial planning. Generally Accepted Accounting Principles (GAAP) gives guidelines for organizations to follow in regards to their financial report. Misconduct, fraudulent behavior and abuse happen...
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...Shahriar Rusho F&B JU Principles of Management (109) Financial Accounting (FNB106) 612 620 Batch #02 Introduction The organization we have worked on- F&B JU Principles of Management (109) Batch #02 Introduction (cont’d) Operation starts Banking system Main objective June 2, 1999 Commercial bank Providing with caring services by being innovative in the development of new banking products and services Head office 61, Dilkusha Commercial Area Dhaka-1000 F&B JU Principles of Management (109) Financial Accounting (FNB106) Batch #02 Objectives of the presentation • Learning financial statement analysis • Analyzing the financial statement of Mercantile Bank Limited • Finding out its financial condition and whether it is making profit or not F&B JU Principles of Management (109) Financial Accounting (FNB106) Batch #02 Techniques of financial statement analysis There are several techniques of financial statement analysis. They are1. Ratio analysis 2. Funds flow analysis 3. Common size analysis 4. Break even analysis 5. Trend analysis F&B JU Principles of Management (109) Financial Accounting (FNB106) Batch #02 Techniques of financial statement analysis (cont’d) Here we will use ratio and trend analysis system: Ratio analysis: Ratio is a statistical yardstick that measures the relationship between two accounting figures based on comparison in numerical terms. It points out whether the financial condition of a firm...
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...Generally Accepted Accounting Principles Debra Hilling HCS 571 January 24, 2011 Generally Accepted Accounting Principles Accounting departments are no longer the sole responsible parties for the financial management of a health care organization. Nurse managers, pharmacy directors, and department direction are often responsible for financial management. Accounting Concepts Financial management is the management of an organization’s finances. The goal of financial management is to maximize the wealth or profit of an organization and to achieve its other goals. Financial management includes accounting and finance. Accounting is the management of an organization’s financial information. Accounting includes financial and managerial accounting. Financial accounting is the compilation of retrospective information about an organization’s operation and the results of the operation. Managerial accounting provides insight and information that will improve decisions made by management. Finance includes an analysis of an organization’s acquisition and disposition of resources. Financial management has two goals: profitability and viability. Profitability has a tradeoff between an accepted level of risk and profits. An organization often take higher risks are taken when anticipating a higher rates of return (Finkler & Ward, 2006). Viability has a negative effect on profitability. Organizations with a greater liquidity have more safety, but having...
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...Financial Management of Health Care Organizations Latasha Rowell August 4, 2015 HCS/405 Conway Brew Financial Management In any business, financial managers should ensure that financial reporting practices and ethical standards are being met as well as maintained. These practices are vital in the financial success for any company, especially in health care finance. Within this paper, a summary of the four elements of financial management, generally accepted accounting principles, and general financial ethical standards will be discussed. Summary of the Four Elements of Financial Management There are four main financial statements of a profit earning organization. They include the balance sheet, the statement of revenue and expense, the statement of fund balance or net worth, and the statement of cash flows. The balance sheet provides a snapshot of what an organization's owns and owes. This is displayed as assets and liabilities. The balance sheet provides a snapshot of a company’s net worth. The income statement provides an overview of the financial flow of an organization. This report is commonly extracted for a specific period of time rather than a single point in time. This statement is most often utilized in an audited financial report on a quarterly and annual basis. The statement of net worth calculates the non-operating expenses and allows the income statement to tie back to the balance sheet when the three statements are prepared for the same point in time...
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...Governance and management Quality can be enhanced by better management practices, transparency in the use of resources, and accountability mechanisms to communities and other stakeholders. Mechanisms for promoting ownership and accountability through participatory planning deserve increased attention. Issues of governance go beyond ensuring better management of the public sector. They include a concern for increasing ownership by different stakeholders at different levels. One strand of the research focuses on centralization/decentralization to answer questions about what responsibilities within education systems (such as recruitment of teachers, control of budgets, design of curricula) are most appropriately located at national, provincial, district and/or school levels in countries of different sizes and cultures. The research also takes into consideration the distribution of responsibilities within particular levels, e.g. at the national level between national ministries of basic education, higher education, finance, planning, etc. A second strand focuses on management of skills development and training. Expansion of opportunities for young people who have completed basic education does not imply exclusive attention to traditional models of formal education. Attention is given to alternative models and to non-formal modes which can serve out-of-school youths. Learners in modes of post-basic education pay attention to the demands of the labour market. This requires...
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...making make up the four elements of financial management Baker (2011). Standards and guidelines of financial reporting are known as generally accepted accounting principles (GAAP) ("Accounting Principles & General Financial Ethical Standards", 2014). Financial ethics and standards determine the success of an organization. The VA is accused of the death of over 1000 waiting for care and budget mismanagement (“Bad VA care may have killed more than 1,000 veterans, senator's report says,” 2014). The alleged deaths could have been avoided through the use of GAAP. The FBI has uncovered millions of Medicare fraud rings (“More Than 20 People Arrested Following Investigations into Widespread Health Care Fraud in D.C. Medicaid Program ” 2014,). The Four Elements of Financial Management According to Baker (2011), the four elements of financial management are: planning, controlling, organizing and decision making. Planning is the stage of identifying the organizations objectives and steps to obtain the objectives. Controlling allows management to measure data from previous and current reports to determine changes within the organization as needed. Organizing is the stage in which management coordinates each aspect of the plan, such as; who, what, when and where. Decision making is management’s final role in making an educated decision based on the other four elements of financial management. Through planning, controlling, organizing, management can effectively carry out the decision...
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...1. Introduction: Financial accountancy (or financial accounting) is the field of accountancy concerned with the preparation of financial statements for decision makers, such as stockholders, suppliers, banks, employees, government agencies, owners and other stakeholders. Financial capital maintenance can be measured in either nominal monetary units or units of constant purchasing power. The central need for financial accounting is to reduce the various principal-agent problems, by measuring and monitoring the agents' performance and thereafter reporting the results to interested users. Financial accountancy is used to prepare accountancy data for people outside the organization or for those, who are not involved in the mundane administration of the company. Management accounting, provides accounting information to help managers make decisions to manage and enhance the business. In short, financial accounting is the process of sum-arising financial data, which is taken from an organization's accounting records and publishing it in the form of annual or quarterly reports, for the benefit of people outside the organization. Financial accountancy is governed not only by local standards but also by international accounting standard. 2. Role of Financial Accounting: • Financial accounting generates some key documents, which includes profit and loss account, patterning the method of business traded for a specific period and the balance sheet that provides a statement, showing mode...
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... Reporting Practices & Ethics Paper In the health care environment financial practices and ethical care finance is very important to produce successfully organizations. In the health care industry and in any business, ethical and financial practices are adopted to increase the organization value and consumer confident as well as protected the services or products provide by the organization and maintain the organizations brand name. With the cost of providing health care services, patient’s way of payment for these services and the environment in which those patients reside and receive those services are important elements that affects care. This is why financial management and financial reporting is also essential factors for any organization. Most organizations have mission statements, values and visions created to uphold the utmost integrity, honesty and respect for not only the community it serves but also the employees. Financial management can create a positive atmosphere of teamwork or a negative one of turmoil and failure. That is why it is very important for health care organizations to abide by the four elements of financial management. Four Elements of Financial Management The four elements of financial management are planning, controlling, organizing and directing, and decision making. Planning is when the financial manager identifies the steps that must be taken to accomplish the organization’s objectives. The purpose...
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...Running Head: Guillermo’s Furniture Store Scenario [Name] [Professor Name] [Course] [Date] Abstract: This paper attempts to examine the financial concepts found in Guillermo's Furniture Store Scenario. The Financial concepts are used to demonstrate how they can significantly sustain a company’s competitive edge. It further discusses the financial management approaches and how their proper application can add value to a business’ products as well as economic efficiency. Further, the paper attempts to develop a financial plan for Guillermo to enable it to competitive in its respective furniture market. Guillermo’s Furniture Store: Financial Principles Guillermo’s Furniture Store offers a convenient case study essential for analysis of financial principle concepts within a competitive economic setting. Among the financial concepts appreciable within the context of the set-up include financial markets, financial principles as well as business ethics that form the basis from which financial decisions are made. Guillermo’s Furniture Store case study divulges how the entry of a new competitor from abroad has triggered unexpected challenges to the financial situation of the business. Previously, Guillermo furniture store seem to benefitted from a form of monopoly advantage, resulting from its seemingly popular brand name, non-competitive market conditions and cheap labor in Sonora. This was until the entrance of the new entrants into the local market. Competitors...
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...School The University of Adelaide University of South Australia Open Universities (conferred by Uni of SA) TASMANIA University of Tasmania VICTORIA Australian Catholic University Cambridge International College Carrick Higher Education Deakin University Holmes Institute Holmesglen Institute of TAFE La Trobe University Melbourne Institute of Technology Monash University Northern Melbourne Institute of TAFE RMIT University Swinburne University of Technology The University of Ballarat The University of Melbourne Victoria University WESTERN AUSTRALIA Curtin University of Technology Edith Cowan University Murdoch University The University of Notre Dame Australia University of Western Australia SINGAPORE Nanyang Technological University Singapore Management University Page 3 3 3 3 3 4 4 4 4 4 5 5 5 6 6 6 7...
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...Practices and Ethics In 2012 GlaxoSmithKline (GSK) paid $300 million in fines for incorrect pricing (The United States Department of Justice, 2012). Five executives of National Century Financial Enterprises were convicted of conspiracy to commit securities and wire fraud (New York Times, 2008). These companies are just two examples of financial fraud and lack of financial ethics in health care organizations. These two stories reinforce the importance of employing ethical and trustworthy financial managers and staff. Financial management is a complicated and detailed job. Generally accepted account principles (GAAP) have three sets of rules, and include 10 basic guidelines and principles (Averkamp, 2014). Planning, controlling, organizing and directing, and decision making are the primary elements of financial management (Baker & Baker, 2011). The first of the four elements in financial management is planning. In this phase, the manager identifies the steps that need to be taken to complete the organizations objectives (Baker & Baker, 2011). How much money will be needed to maintain operations in the next year? Things like medical supplies, equipment, additional employees, and more need to be considered in the planning process. The planning stage will encompass the next business year as well as the years to follow. Many organizations will want a five to 10 year plan or longer. The next element is controlling, and this is usually carried out by the controller or comptroller...
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...Executive Summary In 2005, Bank for International Settlements (BIS) came up with 7 high-level principles on business continuity and was issued to various financial industry participants as guidelines. The 7 principles provide a comprehensive overview of the necessary steps for business continuity planning. Financial industry participants are required to develop respective business continuity planning in accordance to the 7 high-level principles. There are various incidents within the last decade that has resulted in major operational disruption to financial industry. However, with the guidance of the 7 high-level principles, most of the participants were able to cope with crisis well and survive through the crisis. In this report, several case studies were researched and commented on their business continuity planning. Subprime crisis which caused the collapse of Lehman Brothers has caused a significant stir in the financial industry. Many counterparties ended up with huge exposure and default due to the fall of Lehman Brothers. However, Euroclear was able to manage the crisis well after it activated its crisis management plan which has been developed before the crisis. Similarly, terrorist’s attack on New York World Trade Center has not only caused major security issues but has also significantly affecting the financial industry. Bank of America and Deutsche Bank were the direct victims of the terrorist attack. Both banks remained sound operation and survived through the...
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...Based Accounting Principle Based Accounting System Part: 3 Comparisons of Principle and Rules Based Accounting Standards Conceptual Framework Flexibility of Rules and Principles International Accounting Platform Comparability of Financial Statements Realistic Representation of Accounting Information Part:4 Findings of the Research Study Part :5 Conclusion Reference Appendix Appendix 1: Narration on Figure 1 - Qualities of Accounting Information Abstract The proposed research paper attempts to illustrate the importance of a global accounting system and the impact of standards on the global market, as well as, providing the means for comparable financial reporting for decision making by both investors and corporations. This research provides understanding about the major differences of a Rules-based and Principal Based Accounting Systems, including the benefits and drawbacks of such a shift. Proponents of principles-based accounting blame the Rules-Based Accounting System for the major accounting scandals. They believe that the Rules-Based system encourages the use of financial structuring to achieve desired accounting results, which will undermine the quality of financial reporting. Supporters of rules-based accounting argue that principles-based accounting relies heavily on judgment, which will reduce the consistency and comparability of financial information. The current study tries to make a theoretical comparison of both Principles-Based and Rules-Based...
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...PRINCIPLES FOR PERIODIC DISCLOSURE BY LISTED ENTITIES Final Report TECHNICAL COMMITTEE OF THE INTERNATIONAL ORGANIZATION OF SECURITIES COMMISSIONS FEBRUARY 2010 CONTENTS Chapter 1 Introduction Uses of Annual Reports Scope Presentation Glossary of Defined Terms Principles for Periodic Disclosure by Listed Entities A. Periodic reports should contain relevant information B. For those periodic reports in which financial statements are included, and should state that the financial information provided in the report is fairly presented. C. The issuer’s internal control over financial reporting should be assessed or reviewed. D. Information should be available to the public on a timely basis E. Periodic reports should be filed with the relevant regulator. F. The information should be stored to facilitate public access to the information. G. Disclosure criteria. H. Equal access to disclosure. I. Equivalence of disclosure. Page 3 4 5 5 6 7 7 20 2 3 21 22 23 24 25 26 27 Appendix 1 – Feedback Statement on the Public Comments on the 28 Consultation Report – Principles for Periodic Disclosure by Listed Entities Appendix 2 – Comment Letters on Consultation Report – Principles 36 for Periodic Disclosure by Listed Entities. 2 Chapter 1. Introduction In the increasingly globalized securities markets, widely accepted international disclosure standards play an important role in facilitating cross-border capital raising. International agreement on disclosure standards...
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...Running Head: Accounting Principles and Ethics Article Accounting Principles and Ethics Articles Myrthe SaintLouis HCS/457 November 30, 2009 Victoria Odom Abstract A healthcare organization is one of the most successful business inside of a healthcare organization theres so many different profession within, from healthcare providers such as physician, nurses ,Medical assistants and so many more. .A healthcare organization also provide care, , consistency, and support.In addition to care being providing in health care Financial management is another important assets in healthcare organization. With todays econmy crisis healthcare organization face many financial issues for example, Decreasing revenues, increasing costs and terminating healthcare workers .Being a Mananager,Administrator in a healthcare organization is not a easy job because they have to ready lead in today’s climate and also position their organizations for later financial issues and potential political changes. . In order to have an effective financial management, organization, many health care organizations use the Generally Accepted Accounting Principles, corporate compliance, and the value of ethics. Accounting Principles and Ethics Articles A healthcare organization is one of the most successful business inside of a healthcare organization theres so many different profession within, from healthcare providers such as physician, nurses ,Medical assistants and...
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