Five accounting Authorities
The five recognized accounting authorities that facilitate healthcare financing are Federal Standards and Advisory Board (FASAB), Generally Accepted Accounting Authorities (GAAP), Securities and Exchange Commission (SEC), Internal Revenue Service (IRS), and Center of Medicare and Medicaid Services (CMS).
According to Miller (2019), FASAB improves financial reporting through the issuance of federal financing accounting standards and offering guidance based on the internal and external needs of federal financial information users. It sets standards for all private business organizations operating in the community and ensures public accountability.
GAAP involves principles used in preparing financial statements and reports for business organizations. It lays down rules and requirements that guide the preparation of the basic financial statements. GAAP principles help to ensure that business entities comply with the FASAB standards. SEC facilitates capital information, provides an efficient and fair marketplace, and protects investors. With increasing business opportunities, more investors are venturing by putting in their capital investments. Therefore, with increased market entry, there is need for regulation, which is the responsibility of the SEC. Schroeder (2019) argues that SEC enforces the federal securities laws, oversees activities of dealers, brokers, security firms as well as private regulatory organizations. It also collaborates with local, state, federal, and foreign organizations in regulating the securities market. IRS is one of the departments in the United States Treasury that is charged with the responsibility of tax administration. It also educates Americans about their tax responsibilities. According to Schroeder (2019), CMS is concerned with health insurance that is Medicare. Medicare is a legislation that was established after the Social Security Act and was charged with the responsibility of providing Health Insurance for the Aged and Disabled. Medicare established a program that aimed at providing health insurance for the senior citizens above 65 years and complements other insurances, including retirement benefits, disability insurance, and survivors’ benefits.