Font Size: a A A

On Full Disclosure

Posted on:2005-09-13Degree:DoctorType:Dissertation
Country:ChinaCandidate:B LengFull Text:PDF
GTID:1116360152483206Subject:Accounting
Abstract/Summary:PDF Full Text Request
The thesis discusses what the ascendant of full disclosure is and how important it is. The objective of the thesis is to display that full disclosure of related accounting information is necessary, if the market system is expected play a role of dominator. Because accounting information users get sufficient information for economic decision-makings through that mechanism.People have been arguing on the issue of whether disclosure of accounting information should be full or moderate. Some supporting full disclosure argued that nobody should make decisions on what accounting information is essential and what information can be omitted without any negative effects other than accounting information users themselves. While some supporting moderate disclosure noted that full disclosure can not be determined practicable and nobody can determined the extent on which disclosure was made. Thus they believe that there is an optimal scope of disclosure. Within that scope, needs from both certain authorities and information users will be meted and unnecessary effort and cost will be avoided.The criterion used by the thesis to judge whether disclosure is full, is meeting needs from information users for economic decision-makings. People will find that no or few help from certain government authorities or experts in full disclosures, while the judges will be made by information users themselves. In that mechanism, professional judgments can be made by accounting information preparers. As a result, governments provide accounting standards and support information users by law and regulation on CPA professionals.The discussion in the thesis is a hierarchy. Firstly, the thesis introduces some thinking and theory on which our discussion based. The following discussion is made on them. Then the thesis analyses virtues of full disclosure in that kind of market environment based on the simplest model of markets. So far, an original analysis framework has been formed. Because it localization on application, it is necessary toexpand the scope of analysis. It is impossible to relax many assumptions at the same time. We relax them one by one. The sequence is as the same with how accounting information is produced. The results of the classification are accounting information, specific accounting approaches and accounting standards. The thesis concluded that government in the market system shall be absorbed in maintaining order in markets, that is to say, providing accounting standards, regulation on CPA professionals, and supporting on law.In order to display full disclosure is also suitable to some specific market environments, such as transition economy in China now, the thesis introduces regulation factor formally and additional analysis on real market environments. Combined with Chapter 4, Chapter 5 tell us that the key issue is not which way we shall go, but how we can go. On this basis, the thesis give us a discussion on why full disclosure is more suitable.
Keywords/Search Tags:Full Disclosure, Accounting Standards, Accounting Policy, Government
PDF Full Text Request
Related items