The article Reporting Accounting Changes and Their Multi-period
effects mentions that firms are not required to disclose information
for years subsequent to a change, however, I think it is important and
it should be a requirement to disclose changes. I think being
transparent is important in life but especially in situations when
relating to accounting. Disclosing all information seems like the most
ethical thing to do. With information not being disclosed investors
may have a skewed view of what they are investing in if there is
missing information. The article talks about the concept of
systematic forgetting and how investors who did not receive multi-
period disclosure about the accounting change exhibited systematic
forgetting (Emett & Nelson, 2017). Knowing this information and
being given multi-period disclosure could change the ways in how an
investor would invest in the company.
Emett, S. A., & Nelson, M. W. (2017, February). Reporting accounting
changes and their multi-period effects. sciencedirect.com. Retrieved
from: https://www-sciencedirect-com.ezproxy.snhu.edu/science/ar
ticle/pii/S0361368217300144?via%3Dihub
