Acct 421 Full Disclosure Paper
Full Disclosure Paper
ACCT/421
Full Disclosure Paper
Company’s today accounting practices have changed a lot due to recent scandal that has occurred in the past years. Many companies disclose their accounting practice to ensure that all review parties of their books understands the basics of their accounting. The company full disclosure should states future event that may or will occur, and material economic impact on the financial position of the business that is located in the footnotes of the reader statement. As you continue reading, I will discuss in detail what the full disclosure principal is in accounting and why the disclosure increased substantially in the last 10 years, I will explain the need of full disclosure in financial reporting and final I will discuss and Identify possible consequences of failing to properly disclose certain items in financial statements.
Accounting Full Disclosure Principle According to “(Kieso, D. E., Weygandt, J. J., & Warfield, T. D. (2010) full disclosure help recognizes the nature and amount of information that is sufficient important to influence judgment and decisions of an informed user. By having disclosures, parties are able to find financial information, income, cash flow, and investments. These items is reflected in the financial statement the notes of the financial statement or as additional information. This principle goal was set in place to prevent fraud and to help maintain fairness to all investor and public. An increase of the disclosures requirement varies which is on reason that the Sarbanes – Oxley Act of 2002 provided the SEC significant review and rulemaking responsibilities, including the requirement to refine its review process in light of specified criteria and to review each reporting issuer at least once every three years("Sarbanes-Oxley", 2003). The disclosure was implemented at that time as a law and is strong enforced today throughout all companies today.
ACCT/421
Full Disclosure Paper
Company’s today accounting practices have changed a lot due to recent scandal that has occurred in the past years. Many companies disclose their accounting practice to ensure that all review parties of their books understands the basics of their accounting. The company full disclosure should states future event that may or will occur, and material economic impact on the financial position of the business that is located in the footnotes of the reader statement. As you continue reading, I will discuss in detail what the full disclosure principal is in accounting and why the disclosure increased substantially in the last 10 years, I will explain the need of full disclosure in financial reporting and final I will discuss and Identify possible consequences of failing to properly disclose certain items in financial statements.
Accounting Full Disclosure Principle According to “(Kieso, D. E., Weygandt, J. J., & Warfield, T. D. (2010) full disclosure help recognizes the nature and amount of information that is sufficient important to influence judgment and decisions of an informed user. By having disclosures, parties are able to find financial information, income, cash flow, and investments. These items is reflected in the financial statement the notes of the financial statement or as additional information. This principle goal was set in place to prevent fraud and to help maintain fairness to all investor and public. An increase of the disclosures requirement varies which is on reason that the Sarbanes – Oxley Act of 2002 provided the SEC significant review and rulemaking responsibilities, including the requirement to refine its review process in light of specified criteria and to review each reporting issuer at least once every three years("Sarbanes-Oxley", 2003). The disclosure was implemented at that time as a law and is strong enforced today throughout all companies today.
References: Kieso, D. E., Weygandt, J. J., & Warfield, T. D. (2010). Intermediate accounting (13th ed.). Hoboken, NJ: Wiley. Sarbanes-Oxley. (2003). Retrieved from http://www.sox-online.com/basics.html