Disclosure

Financial statements are the backbone of a comprehensive financial report. In fact, a financial report is not complete if three financial statements are not included. but a financial report is much more than these statements. A financial report requires the disclosure. This term refers to the additional information provided in a financial report. Therefore, no comprehensive and ethical financial report must understand not only the financial statements, but thus disclosures.

The Chief Executive of a company (usually the CEO in a company publicly) has responsibility for ensuring that the financial statements have been prepared according to generally accepted accounting principles (GAAP) and financial report provides disclosures adéquates.Il or worked with the CFO or controller of the company to ensure that the financial report meets the standard of adequate disclosures.

Some common methods of disclosures include:

-Notes provide information on the basic figures.Almost all financial statements required notes to provide additional information for many in the financial account balances.

-Additional financial schedules and tables that provide more details can be included in the body of the financial statements.

-Additional information may be required if the company is a public company subject to federal regulation concerning its information actionnaires.Autres financial reports are voluntary and not strictly required legally or GAAP.

Certain information is required by various governing councils and the organismes.Citons including:

-The financial Accounting Standards Board (FASB) has appointed with many normes.Son diktat on disclosure of the effect of stock options is such a standard.

-The Securities and Exchange Commission (SEC) mandates disclosure of a wide range of information for companies obliged to the public.

-International companies must comply with the disclosure standards adopted by the International Accounting Standards Board.