IDEAS home Printed from https://ideas.repec.org/a/eee/reacre/v21y2009i1p19-33.html
   My bibliography  Save this article

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

Author

Listed:
  • Hughes, Susan B.
  • Sander, James F.
  • Snyder, Jillian K.

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.

Suggested Citation

  • Hughes, Susan B. & Sander, James F. & Snyder, Jillian K., 2009. "Critical accounting policy and estimate disclosures: Company response to the evolving SEC guidance," Research in Accounting Regulation, Elsevier, vol. 21(1), pages 19-33.
    • Handle: RePEc:eee:reacre:v:21:y:2009:i:1:p:19-33
    DOI: 10.1016/j.racreg.2008.11.003
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1052045708000088
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.racreg.2008.11.003?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Hughes, Susan B. & Anderson, Allison & Golden, Sarah, 2001. "Corporate environmental disclosures: are they useful in determining environmental performance?," Journal of Accounting and Public Policy, Elsevier, vol. 20(3), pages 217-240.
    2. Buzby, Sl, 1975. "Company Size, Listed Versus Unlisted Stocks, And Extent Of Financial Disclosure," Journal of Accounting Research, Wiley Blackwell, vol. 13(1), pages 16-37.
    3. Ingram, Rw & Frazier, Kb, 1980. "Environmental Performance And Corporate Disclosure," Journal of Accounting Research, Wiley Blackwell, vol. 18(2), pages 614-622.
    4. Darrell, W. & Schwartz, Bill N., 1997. "Environmental disclosures and public policy pressure," Journal of Accounting and Public Policy, Elsevier, vol. 16(2), pages 125-154.
    5. Wiseman, Joanne, 1982. "An evaluation of environmental disclosures made in corporate annual reports," Accounting, Organizations and Society, Elsevier, vol. 7(1), pages 53-63, January.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Edmonds, Jennifer E. & Leece, Ryan D., 2017. "An investigation of the effectiveness of the division of corporate finance as a monitor of financial reporting," Research in Accounting Regulation, Elsevier, vol. 29(1), pages 44-51.
    2. B. Zimmerman, Aleksandra, 2015. "The JOBS Act disclosure exemptions: Some early evidence," Research in Accounting Regulation, Elsevier, vol. 27(1), pages 73-82.
    3. Edmonds, Christopher T. & Edmonds, Jennifer E. & Leece, Ryan D. & Vermeer, Thomas E., 2015. "Do risk management activities impact earnings volatility?," Research in Accounting Regulation, Elsevier, vol. 27(1), pages 66-72.
    4. Heflin, Frank & Shaw, Kenneth W. & Wild, John J., 2011. "Credit ratings and disclosure channels," Research in Accounting Regulation, Elsevier, vol. 23(1), pages 20-33.
    5. Hughes, Susan B. & Wood, Amy L. & Hodgdon, Christopher, 2011. "Bank response to SEC disclosure guidance issued during the 2007–2008 US financial crisis," Research in Accounting Regulation, Elsevier, vol. 23(2), pages 149-159.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Burnett, Royce D. & Hansen, Don R., 2008. "Ecoefficiency: Defining a role for environmental cost management," Accounting, Organizations and Society, Elsevier, vol. 33(6), pages 551-581, August.
    2. Aerts, Walter & Cormier, Denis, 2009. "Media legitimacy and corporate environmental communication," Accounting, Organizations and Society, Elsevier, vol. 34(1), pages 1-27, January.
    3. Jonathan Maurice & Emmanuelle Plot, 2010. "Double diffusion des entreprises dans le rapport annuel : renforcement ou contradiction ?," Post-Print hal-00479533, HAL.
    4. Cho, Charles H. & Patten, Dennis M., 2007. "The role of environmental disclosures as tools of legitimacy: A research note," Accounting, Organizations and Society, Elsevier, vol. 32(7-8), pages 639-647.
    5. Patten, Dennis M., 2005. "The accuracy of financial report projections of future environmental capital expenditures: a research note," Accounting, Organizations and Society, Elsevier, vol. 30(5), pages 457-468, July.
    6. Charles H. Cho & Jonathan Maurice & Emmanuelle Nègre & Marie-Anne Verdier, 2016. "Is environmental disclosure good for the environment? A meta-analysis and research agenda," Post-Print halshs-01369422, HAL.
    7. Aerts, Walter & Cormier, Denis & Magnan, Michel, 2008. "Corporate environmental disclosure, financial markets and the media: An international perspective," Ecological Economics, Elsevier, vol. 64(3), pages 643-659, January.
    8. Patten, Dennis M., 2002. "The relation between environmental performance and environmental disclosure: a research note," Accounting, Organizations and Society, Elsevier, vol. 27(8), pages 763-773, November.
    9. Fareeha Shareef & Howard Davey, 2005. "Accounting for intellectual capital: Evidence from listed English football clubs," Journal of Applied Accounting Research, Emerald Group Publishing Limited, vol. 7(3), pages 78-116, June.
    10. Dong Ding & Bin Liu & Millicent Chang, 2023. "Carbon Emissions and TCFD Aligned Climate-Related Information Disclosures," Journal of Business Ethics, Springer, vol. 182(4), pages 967-1001, February.
    11. Matt Wegener & Fayez A. Elayan & Sandra Felton & Jingyu Li, 2013. "Factors Influencing Corporate Environmental Disclosures," Accounting Perspectives, John Wiley & Sons, vol. 12(1), pages 53-73, March.
    12. Radhakrishnan, Suresh & Tsang, Albert & Liu, Rubing, 2018. "A Corporate Social Responsibility Framework for Accounting Research," The International Journal of Accounting, Elsevier, vol. 53(4), pages 274-294.
    13. Camélia Radu & Claude Francoeur, 2017. "Does Innovation Drive Environmental Disclosure? A New Insight into Sustainable Development," Business Strategy and the Environment, Wiley Blackwell, vol. 26(7), pages 893-911, November.
    14. Goh, Lisa & Liu, Xuejiao & Tsang, Albert, 2020. "Voluntary disclosure of corporate political spending," Journal of Corporate Finance, Elsevier, vol. 61(C).
    15. Hummel, Katrin & Schlick, Christian, 2013. "Zusammenhang zwischen Nachhaltigkeitsperformance und Nachhaltigkeitsberichterstattung – Legitimität oder finanzielle Überlegungen?," Die Unternehmung - Swiss Journal of Business Research and Practice, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 67(1), pages 36-61.
    16. Claudia Poser & Edeltraud Guenther & Marc Orlitzky, 2012. "Shades of green: using computer-aided qualitative data analysis to explore different aspects of corporate environmental performance," Metrika: International Journal for Theoretical and Applied Statistics, Springer, vol. 22(4), pages 413-450, January.
    17. Charles H. Cho & Martin Freedman & Dennis M. Patten, 2009. "Corporate Disclosure Of Environmental Capital Expenditures: A Test Of Alternative Theories," Post-Print halshs-00459410, HAL.
    18. Anup Kumar Saha & Habiba Al‐Shaer & Rob Dixon & Istemi Demirag, 2021. "Determinants of Carbon Emission Disclosures and UN Sustainable Development Goals: The Case of UK Higher Education Institutions," Australian Accounting Review, CPA Australia, vol. 31(2), pages 79-107, June.
    19. Hughes, Susan B. & Wood, Amy L. & Hodgdon, Christopher, 2011. "Bank response to SEC disclosure guidance issued during the 2007–2008 US financial crisis," Research in Accounting Regulation, Elsevier, vol. 23(2), pages 149-159.
    20. Hadrian Gery Djajadikerta & Terri Trireksani, 2012. "Corporate social and environmental disclosure by Indonesian listed companies on their corporate web sites," Journal of Applied Accounting Research, Emerald Group Publishing Limited, vol. 13(1), pages 21-36, May.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:reacre:v:21:y:2009:i:1:p:19-33. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: https://www.journals.elsevier.com/research-in-accounting-regulation .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.