In my personal opinion, companies should be expected to report the
impact of changes expected in subsequent years, especially if they
have multiperiod impacts. a Current and future Shareholders and
investors rely heavily on comparative financial data to develop
educated decisions effecting the financial standing of the business
currently and future business goals. a Without the impact of changes,
especially for multiperiod impacts, the Shareholders ad Investors are
lacking pertinent pieces of date to reach these decisions accurately,
and may make the wrong decisions.
Multi-period disclosure of accounting can be very useful to investors
and other users in helping investors adjust for an accounting change
in periods subsequent to the change. a One common item is gains and
losses. Investors tend to forget to adjust for the change.
References
Emett, S. A., & Nelson, M. W. (2017, February).
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