ACC309 Week 6 Discussion Post 19

Firmsarenotrequiredtodiscloseinformationforyearssubsequent

toachangesothecurrentfrequencyofdisclosureisnotagainst

compliance.Accordingtotheresultsoftheresearchinthe

article,Reporting Accounting Changes and Their Multi-period

Effects," Resultsindicatethat,asanticipated,investorswhodidnot

receivemulti-perioddisclosureabouttheaccountingchangeexhibit

systematicforgetting...".(Emett&Nelson,2017)Ifthecurrent

disclosuresarebeingeasilyforgottenthenthecommunicationis

ineffectiveandcompaniesshouldbeexpectedtoreporttheimpact

ofchangesexpectedinsubsequentyears,especiallyiftheyhave

multiperiodimpacts.Aslongastimeispassingandchangesare

occurringthenthosechangesshouldbereported.

Multiperioddisclosureofaccountingchangeswouldbe

usefultoinvestorsandotherusers.Accordingtothestudyinthe

article,"Weprovideevidencethataccountingchangeshavemulti-

periodeffectsoninvestorjudgments,andthatadditional

subsequent-perioddisclosuresmitigatethoseeffects."(Emett&

Nelson,2017)Investorswantthemostcurrentandaccurate

informationtomakethebestbusinessdecisions.Itwouldcreatea

senseoftransparencyandcredibilityforinvestorstoreceivethis

informationmorefrequentlyifandwhentherearechanges.The

investorsandotheruserswouldhaveaclearerpictureofthe

company'sstatus.

Reference:

Emett,S.A.,&Nelson,M.W.(2017,February).Reporting accounting

changes and their multi-period effects.sciencedirect.com.Retrieved

June2022,

fromhttps://www-sciencedirect-com.ezproxy.snhu.edu/science/arti

cle/pii/S0361368217300144?via%3Dihub