Part 1 250 words

The Financial Accounting Standards Board is the primary source of generally accepted accounting principles (GAAP) for all health care organizations. Do you agree with this statement? Why or why not?

Part 2 350 words

Discuss the conceptual framework of accounting for federal agencies and compare it to the conceptual framework established by the GASB for state and local governments. Review the financial statements of a federal department/agency and include a specific example of reporting that would differ from that of a state and local government and note the difference(s).

Answer preview

The financial accounting standard board (FASB) is a non-profit organization that creates accounting and financial standards for companies in America. It sets accounting reporting standards following generally accepted accounting principles (GAAP). Yes, I agree that FASB is the primary source of GAAP for health care organizations (Barker & Eccles, 2018). That is because it was established from different entities of accounting, including FASB. The primary purpose of GAAP is to make a uniform way for every organization to compare financial data using a similar set of rules. It is mainly used in health care when making critical financial decisions. These are the standards guide for accountants in calculating and reporting financial events and entities such as health care, clinics, not-for-profit groups, and other healthcare-related entities.

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