Information to assist your study of Management Theories and Principles more interesting
Monday, August 8, 2011
Mandatory and Voluntary Disclosures
Mandatory disclosures
These are components of the annual report mandated by law, regulation or accounting standard. Examples include (in most jurisdictions) statement of comprehensive income (income or profit and loss statement), statement of financial position (balance sheet), cash flow statement, statement of changes in equity, operating segmental information, auditors’ report, corporate governance disclosure such as remuneration report and some items in the directors’ report (e.g. summary of operating position). In the UK, the business review is compulsory.
Voluntary disclosures
These are components of the annual report not mandated in law or regulation but disclosed nevertheless. They are typically mainly narrative rather than numerical in nature. Examples include (in most jurisdictions) risk information, operating review, social and environmental information, and the chief executive’s review.
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