Accepted assumptions about market efficiency mean that it is the information content of disclosure, and not the

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Accepted assumptions about market efficiency mean that it is the information content of disclosure, and not the form of the disclosure, that is valued by the market. Therefore, it should not matter whether information is disclosed within the notes to the financial statements, or in the financial statements themselves. If this is true, then why would managers care if something—such as a lease liability—is disclosed only in the notes, or included within the liabilities disclosed within the balance sheet?

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Financial Accounting Theory

ISBN: 9780071013147

4th Edition

Authors: Craig Deegan, H. Bierman

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