Contemporary Essay Example | Topics and Well Written Essays - 1250 words

Contemporary - Essay Example This is because a formal disclosure framework helps to guide regulators, and preparers towards better and more material disclosure. However, while material disclosure is supposed to be free and within a given time frame, there are numerous cases where preparers have failed to disclose significant materials to users or vice-versa. This fact has been associated with the idea that many organizations lack proper disclosure framework (White, 2009, p.67). It was this lack of proper disclosure framework that led IASB to carryout survey recently about disclosure framework, and found that regulators, preparers and users are supposed to work together so as to improve disclosure. All disclosures need improvement. Disclosure is supposed to be guided by materiality, and that principle based disclosure guidance would be essential. This study will be therefore examining why regulators, preparers and users are supposed to work together so as to improve disclosure. All disclosures need improvement. D isclosure is supposed to be guided by materiality, and that principle based disclosure guidance would be essential According to United States Congress Staff (2002, p.788), one of the most significant findings of IASB is that disclosure should be guided by materiality. ... The main issue is a clear and comprehensive disclosure of information related to sound decision making by market participants, authorities, and the public. Majority of people held the view that crucial information regarding funds and expenditure has always been concealed from the users or in case where it is given, it is not clear and comprehensive. This fact has raised many concerns among the people who want that information disclosure should be improved because it has been facilitating corruption. Due to this increased demands, many organizations are implementing disclosure policies as they have started to come up with succinct disclosure framework. For instance, Financial Market Insurers (FMIs) have implemented a disclosure framework that was organized to supplement the CPSS-ISCO principles for financial market infrastructures, and help it in providing the comprehensive degree of disclosure that is expected of them under Principle 23 on disclosure of rules, main processes, and mar ket data (Fung et al., 2007, p.140). According to Bunger (2012, p.337), the disclosure framework was prepared in association with the CPSS-IOSCO Assessment methodology for the principles for FMIs and the accountabilities of the authorities to ensure a common framework that will reduce burden on FMIs and give assessors a basic set of information from which to start their assessment of FMIs. Heated debate about accounting regulation that calls for a formal disclosure framework has led to establishment and implementation of new rules and regulation that governs information disclosure. For instance, federally tax-exempt organizations stated under IRC sections 501(c) and 501(d) ought to comply