ACC309 Week 6 Discussion Post 1

Ibelievebigchangesshouldbediscussedbetweenacompanyand

theiraccountant.Fromthere,itisuptothecompanytodecide

whetherornottheywanttodisclosethosechangestotheir

stockholdersornot.Sincechangescanaffectastockholder's

decisiononiftheywanttoremainastockholderorselltheirportion;

Icouldunderstandwhyacompanywouldnotwanttodisclosethe

information.However,Ithinkitwouldbemorebeneficialinthe

longrunandmostethicaltomakestockholdersawareoflarge

financialchanges.Somethinglikeachangeinaccountingmethods-is

somethingthatneedstobedisclosed.

Changingaccountingmethodsinfluencehowthefinancialsare

handledintermsoftaxreturns-accruedexpenses,tax/book

reconciliations,etc.Soitisimportanttomakestockholdersawareof

thissotheycaneducatethemselvesonthechangesandpros/cons

thatmaytakeplace.