Disclosure Function of SEC Protective disclosure Informative disclosurethe

Disclosure function of sec protective disclosure

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  Disclosure Function of SEC Protective disclosure Informative disclosure...the emphasis since early 1970s
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    The Disclosure Process Today Differential disclosure Annual 10-K Quarterly 10-Q Aimed toward professional financial analysts Additional disclosure? Information overload Information asymmetry Signaling theory Cost of disclosure for big vs. small firms
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    Items Providing Important Information Summary Annual Report (SAR) Condensed financial statements that omit or boil down the detail contained in traditional audited financial statements Evolved from 1983 FEI study concerned with the readability of annual reports Jenkins Committee Report (1994) AICPA study 1991-94 Concerned with helping users understand a company’s business
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    Key Jenkins Report Disclosures Segmental disclosures Core and non-core activities, separate then in the financial statements Interim reporting Secondary recommendations
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    Jenkins Secondary Recommendations a. Balance sheet items with low verifiability b. Innovative financial instruments (derivatives) c.
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  • Fall '14
  • Balance Sheet, U.S. Securities and Exchange Commission, rigid uniformity, Jenkins Committee

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