An “accounting disclosure” is a statement that recognizes the financial policies of a firm or business. This statement shows expenses and profits over a duration of time. The main principle and purpose of disclosure of accounting policies are to disclose any affair or event that influenced any financial statements.

SEC regulations require that annual reports to stockholders contain certified financial statements and other specific items. The certified financial statement must include a two-year audited balance sheet and a three-year audited statement of income and cash flows.

Key Points

• All relevant information must be disclosed.
• The disclosures can be required by generally accepted accounting principles or voluntary per management decisions.
• Types of disclosures include, accounting changes, accounting errors, asset retirement, insurance contract modifications, and noteworthy events.

The term multiple discriminant analysis (MDA) refers to a statistical technique used by financial planners, investment advisors, and analysts to evaluate potential investments when many variables are at stake.

1. All significant accounting policies adopted in the preparation and presentation of financial statements shall be disclosed.

A disclosure is additional information attached to an entity’s financial statements, usually as explanation for activities which have significantly influenced the entity’s financial results.

The Securities and Exchange Commission (SEC) requires public companies, certain company insiders, and broker-dealers to file periodic financial statements and other disclosures. 3 Investors study these filings to form a view of a company’s performance and activities.

SEC stands for Securities and Exchange Commission. The commission reads the financial disclosures of publicly traded companies including disclosures required by the Sarbanes-Oxley Act and has the legal authority to prosecute violators of securities laws.

HIPAA Disclosure Accounting or Accounting of Disclosures (AOD) is the action or process of keeping records of disclosures of PHI for purposes other than Treatment, Payment, or Healthcare Operations. You are required by law to provide patients a list of all the disclosures of their PHI that you have made outside of TPO.

The Disclosure Checklist (DC) streamlines checklist preparation and review for financial-statement disclosures and builds in quality assurance processes.

Management discussion and analysis (MD&A) is a section within a company’s annual report or quarterly filing where executives analyze the company’s performance. The section can also include a discussion of compliance, risks, and future plans, such as goals and new projects.

MDA

Registrants are no longer required to provide the contractual obligations table in MD&A, but disclosure in MD&A of the company’s material cash requirements is mandatory. Registrants no longer need to disclose off–balance sheet arrangements under a separately captioned section. Such obligations should be discussed in the broader context of MD&A.

SEC Amends MD&A Disclosure Rules This publication is distributed with the understanding that the author, publisher and distributor of this publication are not rendering legal, accounting, or other professional advice or opinions on specific facts or matters and, accordingly, assume no liability whatsoever in connection with its use.

Disclosure of selected financial data is no longer required. Quarterly supplementary financial data must be disclosed only when there are one or more material retrospective changes.

Disclosure of critical accounting estimates in MD&A is now required (a position that clarifies and codifies previous SEC guidance). Registrants are no longer required to provide the contractual obligations table in MD&A, but disclosure in MD&A of the company’s material cash requirements is mandatory.