Full Disclosure Paper

684 words - 3 pages

The full disclosure principle is established as GAAP and states that any and all data and information that is material to financial statements or relevant to investors must be reported. Information is not always financial, such details as management changes, takeovers, lawsuits, and tax disputes are also valuable. Information is presented in the body of financial statements or as attached schedules and notes depending on what type of data it is. There is a balance between information and costs that must be observed to allow reporting to realistically be provided. The Sarbanes-Oxley Act of 2002 (SOX) regulates publicly traded companies with many requirements. Even if information is not required by regulation, the information should be disclosed if relevant, and the cost is not prohibitive.The full disclosure principle is presented in generally accepted accounting principles (GAAP), which is made up of a set of basic goals and qualities to embody in financial reporting. The objectives are based on disclosing information that is relevant to creditors and investors for making financial decisions in a timely basis. This allows users to take advantage of the simple fact that the reporting is available and provides tangible benefits. That information is also required to be reliable; data has to be verifiable with another source. It also needs to be both coming from a neutral source, and accurate. This information needs to be internally consistent between separate reporting entities. The final objective requires that reports be consistent in accounting methodology, and explain any changes that do occur. For these reports to be useful they have to come at regular intervals and include information that is relatively standardized. Expenses, revenues, valuation, and specific details that are material to the average investor must all be presented in an effective and preferably industry-standard form.Disclosure has increased substantially in the last 10 years because of the SOX act. SOX was passed by the U.S. Congress to protect users of financial information such as investors from fraudulent information provided by corporations. This Act came as a result of corporate fraud and scandals highlighted by Enron and WorldCom. Enron hid the true amount of debt the corporation had and WorldCom hid costs as capital expenditure and...

Find Another Essay On Full Disclosure Paper

Homosexual Families Essay

2892 words - 12 pages recognition of stigma (Herdt 4-5). Using Troiden's model as a guide, the present paper examines the four stages of homosexual identity development as it affects both gay children and parents. Section one concentrates on the first two stages of homosexual identity formation and the ordeals gay adolescents and parents before disclosure. Section two explains the third and fourth stages of homosexual identity development. Finally, section three

Summary of Article Outline and Evaluation of Major Issues. Explanation of Accounting Terms and Data. Relevance and Limitations of Accounting.

1356 words - 5 pages , February 9). When the Numbers Don't Add Up. The Economist, Special Report: The trouble with Accounting.Lyons, D. (2002, April 1). Full Disclosure. Forbes Global, Top Stories.NewspapersKan, F. (2003, March 18). $111m Windfall. Today, Hot News.Lee, S. S. (2003, March 18). NatSteel Shares Close at Record High of $2.40. The Straits Times, Money.AppendixLee, S. S. (2003, March 18). NatSteel Shares Close at Record High of $2.40. The Straits Times, Money.

Protecting Personal Health Information: HIPAA is NOT Enough

2346 words - 9 pages there is no standard set regarding how the notices are administered. Each entity has their own methodology that they deem appropriate. Some doctors’ offices provide full disclosure documents that you are required to sign before treatment while others hand the patient a document for you to review at your leisure. HIPAA Enforcement and Penalties The U.S. Department of Health and Human Services (HHS) and specifically the Office for Civil Rights

hitchcock

858 words - 3 pages ANY RELATIVES LIVE AT BOCA WEST? IF YES, ARE THEY EQUITY MEMBERS? LIST NAMES OF ANY RELATIVES EMPLOYED BY BOCA WEST COUNTRY CLUB _____________________________________________ DATE AVAILABLE FOR WORK AVAILABLE FOR WORK SHIFT PREFERENCE DAYS ____________________ HOURS DO YOU HAVE A DRIVERS LICENSE? STATE LICENSE NO. EXP. DATE FULL TIME PART TIME LIST THREE REFERENCES OTHER THAN RELATIVES NAME ADDRESS TELEPHONE NO. SPECIAL SKILLS AND QUALIFICATIONS

Mutual-Authentication Mechanism for RFID Systems

3703 words - 15 pages authentication protocol. • However, they still have the problem, such as location privacy, mutual authentication. In this paper [5], authors presented their security analysis of the LAK and the CWH protocol. The Author showed that the LAK protocol cannot resist replay attacks, and therefore an adversary can impersonate a legal tag. And the next thing which author wants to present a full-disclosure attack on the CWH protocol. Authentication is an essential

Transparency in Corporate Governance

1405 words - 6 pages Transparency in Corporate PAGE \* MERGEFORMAT 1 Running head: TRANSPARENCY IN CORPORATE GOVERNANCETransparency in Corporate GovernanceUniversity of PhoenixTransparency in Corporate GovernanceThis paper evaluates the case of McBride Financial Services, Inc (MFSI), evaluating the concept in corporate governance transparency and the relationship between self-interest of management and effective corporate governance. According to Chew and Gillan

Accounting Regulatory Bodies Paper

945 words - 4 pages securities and corporate reporting. The SEC is made up of five commissioners appointed by the U.S. President and approved by the Senate. The SEC protects investors by promoting full public disclosure and fraudulent and controlling practices in the securities sector. To comply with the SEC all public companies Annual reports are to include a report from management about the company's internal control over financial reporting, and are required

Federal Rules and Regulations that apply to Techno Products, Inc.

4517 words - 18 pages that the members of the board are chosen correctly and that all necessary provisions are in place to ensure full and proper disclosure of information to the SEC.Securities Exchange CommissionThe Securities Exchange Commission's main job is to "protect investors, maintain fair, orderly, and efficient markets, and facilitate capital information". (sec.gov, 2007) In order to protect investors and maintain fair and efficient markets, publicly held

Examining Financial Statements Essay - Landry's

1254 words - 5 pages transactions as the company's operating activities, investing activities as well as its financing activities. In using the Statement of Cash Flow, Landry's was able to show a clear and full disclosure of the company's cash flow.In conclusion, the assignment for Team C was to review the financial statements of Landry's Restaurants, Inc. and provide analysis and discussion of the income, assets, property and equipment purchases, and exercised stock

CHAPTER 2 Conceptual Framework for Financial Reporting

9427 words - 38 pages , 9 4. Elements of financial statements. 8, 9, 21 5, 6 5 5. Basic assumptions. 10, 11, 12 7, 8, 13 6, 7 6. Basic principles: a. Measurement. b. Revenue recognition. c. Expense recognition. d. Full disclosure. 13, 14, 15 16, 17, 18, 19, 20 22, 23 9, 10, 13 9 9, 13 9, 13 6, 7, 9, 10 7, 9, 10 6, 7, 9, 10 6, 7, 8, 9, 10 5, 6 5, 6 5, 6, 7, 8, 10 7. International standards- comprehensive. 27, 28, 29 9, 10 8. Constraints. 24, 25, 26 11, 12, 13, 14 3, 6

Ethical Violations in "The Monster Study"

910 words - 4 pages they were minors. Johnson and Tudor did not give full disclosure of this research to the minors, teachers, or matrons at the orphanage. Beneficence is the second ethical principle; the researcher should maximize the benefits to the individual or society without creating harm to the subject. Johnson was so determine to get a cure that he caused psychological damaged to these children and did not follow up with care. The last ethical principle is

Similar Essays

Full Disclosure Essay

916 words - 4 pages explains how companies handle situations that cannot be explained in numerical terms but should be disclosed to the investing public. This paper will explain what is the full disclosure principle in accounting and why has disclosure increased substantially in the last 10 years. This paper will also address why full disclosure is needed and what possible consequences may occur if companies do not follow these principles.What is Full Disclosure

Full Disclosure Essay

680 words - 3 pages Running head: FULL DISCLOSURE 1 FULL DISCLOSURE 3 Full DisclosureACC/421November 1, 2014 Full DisclosureIntroductionCompanies today have changed the way accounting practices are performed because of the past accounting scandals by Enron, WorldCom, and Tyco. The purpose of this paper is to answer question two in Chapter 24 on the full disclosure principle and how disclosure has increased in the last ten years. Also in this paper, I will

Ethics Of Full Disclosure Of Security Holes

2962 words - 12 pages Ethics of Full Disclosure of Security Holes Introduction Security breaches are making big headlines nowadays, and Microsoft is leading the charge. Its flagship operating systems and office suite are so bulky and complex, that it is impossible to be bug-free. The system administrators (the white hats) are up to their noses plugging all the holes from super hackers (the black hats). Yet they are also facing attack from another front

Accounting Regulatory Bodies Paper

1017 words - 4 pages necessitates that public companies disclose important financial data to the public. A business complies with this requirement by releasing full public disclosure of financial statements and annual reports published each year. The public may access a business' annual report and find information on a company's auditor's reports, income statement, statement of cash flows, financial situation, and management's discussion and analysis. (SEC, 2007)The next body