New accounting rules: asset allocation and portfolio management.
New accounting rules went into effect at the end of 1995 that are now starting to affect how medical practices must report income from equity and fixed income investments. This article explores the new accounting rules and considers the other factors that help practices determine investment strategies, including desired investment return, comfort with level of risk, appropriate time horizons, liquidity needs and legal restrictions. The author also presents an example that examines the different considerations that may affect an asset allocation decision, including endowments and operating reserve funds.
Andrew
B K
BK
Ziegler Asset Management Inc., Milwaukee, WI 53202, USA.
D000066:Accounting / Q000592:standards*; D002202:Capital Financing; D006123:Group Practice / Q000191:economics; D007182:Income; D007449:Investments / Q000592:standards*; D016134:Organizational Policy; D009939:Organizations, Nonprofit / Q000191:economics*; D011216:Practice Management, Medical / Q000191:economics* / Q000331:legislation & jurisprudence; D014481:United States