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GAAP as applied to the health care industry

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Explain generally accepted accounting principles applied to the health care industry and how they are applied to your Operating Budget Projection.

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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 ...

Solution Summary

the 269 word cited solution explains the application of GAAP as it applies to for profit entities in the health care industry.

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Generally accepted accounting principles (GAAP) and health care

Some generally accepted accounting principles (GAAP) apply only to health care, and there are many health care organizations that use other comprehensive bases of accounting when GAAP does not apply -- for instance, an HMO that must report to a government regulatory agency using that agency's guidelines instead of GAAP. What is so unique about health care that it would cause accounting principles to change? This is so confusing to me. Can anyone help me understand this?

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