Abstract

Because hospital accounting system has an affect on government policy making and accounting transparency, this paper studied on problems and improvements for current hospital accounting system including external audit, audit review, Public announcement, interpretation of accounting standards, and internal control system. The results of study are summarized as followings. First, the current regulation of accounting standards, recognizing expense and liability when setting up reserve fund for essential business should be revised into dealing with appropriation of surplus and the closing adjustment of Corporate Income Tax Law is replaced with return adjustment, Secondly, no standard of dealing with medical malpractice expense causes distorting the profit and loss, and comparability. To resolve this problem, this study suggests using independent account title. The third is related to distorting accounting information due to insufficiency of regulations about classification of securities and recognition of profits and losses from appraised. To resolve this issue, the classification of securities of hospital accounting standards should be reconciled with GAAP. The fourth, the limited scope of medical institutions be forced into getting the external audit leads to reducing accounting transparency and reality. Thus, the scope should be expanded and the audit review system should be established. The fifth is related to decreased comparability due to the various channels of announcing financial statements. To resolve this problem, it is necessary to make a single channel. The sixth, to provide interpretation and answering questions about hospital accounting standards, it is necessary to establish an institution. The seventh, it is needed to enforce appointing an auditor and reinforce the requirements of directors or auditors.

Keywords

• hospital accounting system
• reserve fund for essential business
• national university hospitals

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