Understanding Disclosure in Financial Statements: Types and

School: Humber College - Course: ACCT 251 - Subject: Accounting

Ch 23. Other Measurement and Disclosure Issues Full disclosure principle: information relevant to decision-making should be included in the financial statements. Obscuring material information with immaterial information can make financial statements less understandable * obscured by being vague, unclear or by scattering it throughout the statements Types of disclosure: Key continuous disclosures for public companies (OSC) oAnnual information forms oFinancial statements oInformation circulars oManagement's discussion and analysis (MD&A) oMaterial changes oForward-looking information (FLI) oExecutive compensation Not All Disclosure is Good Disclosure Not enough information and too much information are equallyproblematic Companies and investors should be aware of disclosure that is oMisleading: inaccurate, incomplete, unbalanced information oSelective: disclosing to a select group; not the general public oUntimely: late disclosure of material changes Other issues oInsider trading (using material information not disclosed to the public) oPractices sometimes involve violations of securities law Management Commentary: Some information is best provided in the financial statements; some is best provided by other means (e.g., management commentary). Some sources are not covered by IFRS; this is changing Disclosure requirements for public companies—increased substantially over the past several decades due to Growing complexity of the business environment, Necessity for timely information, Sustainability and Environmental, Social and Governance (ESG) reporting Requirements for private companies are less: less complexity, and are closely held (stakeholders have greater access to information) Accounting policies disclosure should be one of the first notes or in a separate section preceding the notes Accounting policy notes explain the specific accounting methods and principles that are currently used and are considered appropriate for fair presentation Accounting errors are unintentional mistakes; Irregularities are intentional distortions of the statements Company management is responsible for ensuring operations are conducted within the applicable laws and regulations that determine the amounts to be reported in the statements
 
Company auditors should consider the legal and regulatory framework of a company to help identify non-compliance that could have a material effect on the statements

Expert's Answer

Your future, our responsibilty submit your task on time.

Order Now

Need Urgent Academic Assistance?

Get Professional Help at Low Prices!

*
*
*


*

TOP
Order Notification

[variable_1] from [variable_2] has just ordered [variable_3] Assignment [amount] minutes ago.