We use cookies to give you the best experience possible. By continuing we’ll assume you’re on board with our cookie policy

See Pricing

What's Your Topic?

Hire a Professional Writer Now

The input space is limited by 250 symbols

What's Your Deadline?

Choose 3 Hours or More.
Back
2/4 steps

How Many Pages?

Back
3/4 steps

Sign Up and See Pricing

"You must agree to out terms of services and privacy policy"
Back
Get Offer

Financial Statement Disclosure

Hire a Professional Writer Now

The input space is limited by 250 symbols

Deadline:2 days left
"You must agree to out terms of services and privacy policy"
Write my paper

Your arguments should include: ii) The motivating and denominating factors for firms to report the segments results. Answer: There are some factors that may denominate firms to report the segments results in their financial statements. First of all, the factors that will denominate the firms are how the operating segment information will be disclosed in the financial statements.

Obviously, it is common for the public listed company to disclose all the information with more detailed in the financial statements in order to show the value of company during the period.

Don't use plagiarized sources. Get Your Custom Essay on
Financial Statement Disclosure
Just from $13,9/Page
Get custom paper

The problem is when the company decides to disclose more detailed information which it will publish the additional information to the public. One thing is when the company decided to publish the additional information it will incurred some cost which known as proprietary cost.

Some people may argue that the company will escape to pay the proprietary cost when incurred, so the company will obviously choose to tot to disclose information that are not necessary by the regulation.

Moreover, it will lead the company to disclose information that is not really useful in the financial statements when there is an additional cost incur and increasing in the disclosure requirements. Another thing is when the company disclose the information it has to be make sure that there is no competitive harm in the publish information.

For some reasons it may occurs competitive harm to the company when disclosed a lot of information especially internal information. Besides having the additional cost incurred which is the proprietary cost when disclosed too detailed information, another thing is the competitors may have an advantage from the disclosure of the segments information. Besides that, the denominating factors for the firms to report operating segments is the usefulness of the information to the users Bimodal K. Propaganda and Malcolm C. Harris (1989) discuss the role of geographical segment disclosure for multinational firms.

They argue that unless geographic disclosure exists, investors will not be able to sees correctly a multinational company’s risks and potentials, given the high amount of different economic environments in which it operates. Additionally, firms which operate in less risky environments will have incentive to disclose their status, in order to distinguish themselves from firms that operate in more risky environments. Bobby.

Cite this Financial Statement Disclosure

Financial Statement Disclosure. (2018, May 29). Retrieved from https://graduateway.com/financial-statement-disclosure/

Show less
  • Use multiple resourses when assembling your essay
  • Get help form professional writers when not sure you can do it yourself
  • Use Plagiarism Checker to double check your essay
  • Do not copy and paste free to download essays
Get plagiarism free essay

Search for essay samples now

Haven't found the Essay You Want?

Get my paper now

For Only $13.90/page