I a believe big changes should be discussed between a company and
their accountant. a From there, it is up to the company to decide
whether or not they want to disclose those changes to their
stockholders or not. a Since changes can affect a stockholder's
decision on if they want to remain a stockholder or sell their portion; I
a could understand why a company would not want to disclose the
information. a However, I a think it would be more beneficial in the
long run and most ethical to make stockholders aware of large
financial changes. a Something like a change in accounting methods- is
something that needs to be disclosed. a
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.
