EIRP Proceedings, Vol 2 (2007)

Abstract

Performance Accounting and Analysis provides metrics definitions, compliance tracking, cost
accounting by task order, functional area for full-cost accounting with reporting tools for management, along
with a complete array of data-extraction methods. The comprehensive income is a project which addresses
broadly the issues related to the display and presentation in the financial statements of all recognized changes in
assets and liabilities from transactions or other events except those related to transactions with owners as
owners (sometimes called comprehensive income). The other two measures of financial performance that are
being applied increasingly in investor-owned and not-for-profit healthcare organizations are market value
added (MVA) and economic value added (EVA). Unlike traditional profitability measures, both MVA and EVA
measures take into account the cost of equity capital. MVA is most appropriate for investor-owned healthcare
organizations and EVA is the best measure for not-for-profit organizations.