The SEC requires full disclosure from companies that wish to be publicly traded on the major U.S. Exchanges. By enforcing the rule, the SEC attempts to instill confidence in investors that the financial marketplace is efficient and transparent so that individual investors can take part in it for material profit. How does full disclosure affect financial reporting? Full disclosure affects financial reporting with financial facts significant enough to influence the judgment of the informed reader. And sometimes the information given can be difficult for users to absorb the information. Some say it is information overload. Companies making it difficult for the reader. Are there any ethical implications to what must be reported in order to comply with full disclosure? Explain….
Hill Country Snack Foods Company manufactures, markets, and distributes snack foods and frozen treats throughout the United States. Hill Country is overall well performed company. Sales, Net Income, ROE and ROA had increased at a steady rate. Company mainly focused on maximizing the shareholder value by the CEO and other management’s managerial philosophy. Currently, Hill Country uses a risk adverse strategy to choose their business or project. Hill Country’s industry is high competitive but it kept going well with cost efficiency and quick reaction to customer requirements. From these reasons, Hill Country has few risks. However, analyst and experts present that Hill Country’s excess liquidity with zero debt is going to lose benefit and fail to maximize the shareholder value….