Mom 153

Mom 153

Generally Accepted Accounting Principles (GAAP) refers to the standard of guidelines for financial accounting utilized in any given jurisdiction. It includes the standards, conventions, and rules which accountants follow in recording and summarizing transactions, and preparing of financial statements. The information in financial accounting must be objectively assembled and reported. Third-parties who rely on such information have a right to be assured against data which has been tainted by bias and inconsistencies. It is for such reason that financial accounting relies on Generally Accepted Accounting Principles. Principles derive from tradition, such as the concept of matching. In any report of financial statements (audit, compilation, review, etc.), the auditor must indicate to the reader whether or not data contained within presented statements comply with GAAP (http://www.best-practice.com/best-practice-in-reporting-accounting/best-practices-in-accounting/generally-accepted-accounting-principles-gaap/).
United Healthcare, a UnitedHealth Group company, completed an acquisition of XL Health Corporation, a sponsor of Medicare Advantage health plans with a primary focus on Medicare recipients with special needs, such as those with chronic illness and those eligible for Medicaid (“dual eligible”). By building on XL Health’s model of care, United Healthcare can better serve chronically ill and dual eligible Medicare beneficiaries nationwide. United Healthcare and XL Health signed an acquisition agreement in November 2011. The acquisition is expected to add approximately $2 billion to UnitedHealth Group’s 2012 revenues and $0.05 to net earnings per share, after integration expenses and investments to expand XL Health’s scale and provide its services to chronically ill beneficiaries currently served by United Healthcare Medicare & Retirement, including XL Health, UnitedHealth Group projects net earnings of $4.60 to $4.80 per share in 2012...

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