Question

If certain conditions are met, the SEC requires companies to disclose information about future events that are reasonably likely to materially affect the firms’ operations. Many companies are understandably reluctant to disclose such information. After all, positive predictions may not materialize and negative predictions may unduly alarm investors. What ethical considerations should a company’s managers consider when deciding what prospective information to disclose in the MD&A section of the annual report?



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  • CreatedFebruary 20, 2015
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