Critical accounting policy and estimate disclosures: Company response to the evolving SEC guidance

Susan B. Hughes, James F. Sander and Jillian K. Snyder

Research in Accounting Regulation, 2009, vol. 21, issue 1, 19-33

Abstract: In late 2001, soon after numerous financial reporting failures including the much publicized demise of Enron, the SEC began a series of initiatives to improve critical accounting policy (CAP) and critical accounting estimate disclosures included within the MD&A section of Form 10-K. The first announcement, in the form of cautionary guidance, was issued in December 2001. This was followed by a Proposed Rule in 2002, and additional disclosure guidance near the end of 2003. Combined, the guidance required companies to provide information that would help investors understand the impact of estimates, accounting policies and external factors on financial results. Through 2007, the SEC continued to provide guidance as to the content of CAP disclosures in the MD&A.

Keywords: Critical accounting policies; Critical accounting estimates; SEC guidance; Company disclosures (search for similar items in EconPapers)
Date: 2009
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Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:reacre:v:21:y:2009:i:1:p:19-33

DOI: 10.1016/j.racreg.2008.11.003

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