One of the objectives this week focuses on evaluating disclosure requirements for financial reporting. There is widespread agreement that disclosure requirements are increasing. In addition, there is general industry consensus that the cost of disclosure can be substantial in a number of cases, whereas the benefits are typically difficult to assess.

Respond to the following in a minimum of 175 words:

• Explain the benefits that were gained in the accounting profession after adopting a full disclosure principle.
• Discuss some of the reasons why disclosure requirements are increasing.
• Discuss possible reactions to firms that fail to adopt high-quality reporting policies