The Disclosure of Financial Accounting Information

Topic 

The Disclosure of Financial Accounting Information

Instructions 

Write an analysis paper analyzing the topic of Accounting disclosure: the act of providing financial information for review by external users.

Answer Preview 

The concept of disclosure in accounting requires companies to release accurate and transparent information in regards to their finances. The Sarbanes-Oxley Act 0f 2002 was developed to respond to scandals that had occurred in the 1990s and the early 2000s (Farvaque, Refait-Alexandre & Saïdane, 2011). Most of the scandals at the time had something to do with companies failing to make a significant disclosure of their financial accounting information. The act was developed to increase the confidence of investors and other external users of financial reports in the accuracy of the financial statements, which corporates made public. In this regard, the main benefit of full disclosure is that it helps minimize cases of scandals whereby companies takes advantages of the external users of their statements. By making full disclosure of their accounting information, companies provide the users with accurate and complete information that they can use to make decisions without any misrepresentation or omission of facts.

Word Count: 850