If certain conditions are met, the SEC requires companies to disclose information about future events that are reasonably likely to materially affect the firmsâ€™ 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 companyâ€™s managers consider when deciding what prospective information to disclose in the MD&A section of the annual report?
Answer to relevant Questionsâ€śItâ€™s easier to learn accounting if you avoid real-world examples.â€ť Do you agree? Explain.What are the most important ethical standards for accountants?Form groups of four to six students. Each student should choose an industry (a different industry for each student in the group) and pick two companies in that industry. Compute the following for each of the companies: 1. ...What information is presented in the MD&A section of annual reports? â€śThe tax law discriminates against preferred stock and in favor of debt.â€ť Explain.
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