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. a 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: a https://www-sciencedirect-
com.ezproxy.snhu.edu/science/article/pii/S0361368217300144?via
%3Dihub
