Explain generally accepted accounting principles applied to the health care industry and how they are applied to your Operating Budget Projection.
GAAP is applied to not for profit health care organizations following the provisions set forth in SFAS 117 issued in 1993. Prior to that year, there were a variety of presentations used for the purpose of satisfying specific funding sources within a non-profit organization. It became apparent that piecemeal statements could be distorting and not reflective of the entire organization.
The new FASB rules issued in 1993 required four separate statements on an entity-wide basis ...
the 269 word cited solution explains the application of GAAP as it applies to for profit entities in the health care industry.