AN EVALUATION AND EMPIRICAL STUDY OF THE DISCLOSURE OF ACCOUNTING POLICIES IN PUBLISHED FINANCIAL STATEMENTS*

Abstract

s of Doctoral Dissertations 1161 (97%). This substantial agreement among respondents indicated strong approval of the disclosure of specific information in financial statements. Approximately 58 per cent of the respondents indicated that they favored a flexible format for the disclosure of accounting policies in financial statements. The preference for a flexible format concurs with the recommendation of the APB Opinion 22. More than 64 per cent of the respondents indicated that they preferred that the disclosure of significant accounting policies appear before rather than after the financial statements. Furthermore, a vast majority of the respondents indicated that they made adjustments to net income when they were confronted with alternate accounting methods. Although asked, none of the respondents provided any specific procedures for adjusting net income when confronted with alternate accounting methods in comparing financial statements. This content downloaded from 207.46.13.156 on Sat, 10 Sep 2016 05:38:01 UTC All use subject to http://about.jstor.org/terms