disclosure

Examples of disclosure in the following topics:

• Mechanics of a Disclosure

  • That is where the disclosures on the financial statement come into play.
  • This information must be noted in the disclosure.
  • Other items requiring disclosure are noteworthy events and transactions.
  • Disclosures can span several pages at the end of the financial statements.
  • Summarize why a company would have a disclosure on the financial statement

• Events Triggering Disclosure

  • Events that trigger disclosure should be based on an accountant's assessment of materiality.
  • Another event that can trigger a disclosure is prior period adjustments.
  • Events that trigger disclosure should be based on an accountant's assessment of materiality, especially when facing decisions related to the full disclosure principle.
  • Disclosures will normally include details to materiality decisions in the notes to financial statements.
  • Events that trigger disclosure should be based on materiality and the full disclosure principle

• Full-Disclosure Principle

  • The full disclosure principle states information important enough to influence decisions of an informed user should be disclosed.
  • The full disclosure principle states that information important enough to influence the decisions of an informed user of the financial statements should be disclosed.
  • In judging whether or not to disclose information, it is better to err on the side of too much disclosure rather than too little.
  • Many lawsuits against CPAs and their clients have resulted from inadequate or misleading disclosure of the underlying facts.
  • As an accountant, the full disclosure principle is important because the notes to the financial statements and other financial documents are subject to audit.

• Current Issues in Reporting and Disclosure

  • Accountants must stay up to date with current issues in reporting and disclosures related to standards set by regulatory agencies.
  • Accountants must stay up to date with current issues in reporting and disclosures related to standards set by regulatory agencies.
  • Financial Accounting Standards Board (FASB) issued Statement of Financial Accounting Standards 157: Fair Value Measurement, which "defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles (GAAP), and expands disclosures about fair value measurements. " This statement is effective for financial reporting fiscal periods commencing after November 15, 2007 and the interim periods applicable.
  • Accountants must stay up to date with current issues in reporting and disclosure.
  • Give some examples of current issues in reporting and disclosure that an concern an accountant

• The Disclosure Process

  • Example of Disclosures of Contingencies: "A jury awarded USD 5.2 million to a former employee of the Company for an alleged breach of contract and wrongful termination of employment.
  • Changes in and Disagreements With Accountants on Accounting and Financial Disclosure

• What Goes on the Balances Sheet and What Goes in the Notes

  • Accounting principles can sometimes require the disclosure of specific information for the benefit of the financial statement user.
  • For example, companies that pay pension plan benefits require additional footnote disclosure that provide the user with additional details on pension costs and the assets used to fund it.

• Gain Contingencies

  • The disclosure of gain contingencies is affected by the materiality concept and the conservatism constraint.
  • Most accounting principles follow the conservative constraint, which encourages the immediate disclosure of losses and expenses on the income statement.

• Financial Statement Notes

  • Full disclosure of the effects of the differences between the estimate and actual results should be included.

• Reporting Cash

  • These disclosures come after the financial reports are presented and can be used to explain specific items of financial activity.

• Overview of Statement Changes and Errors

  • Most often, the error is in the recognition, measurement, presentation, or disclosure of an item in financial statements.