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Non financial factors in reporting decisions

Companies are required to file financial reports.

1. What factors other than financial reporting and investor relations are affected by a firm's financial reporting decisions?

2. What important decisions must be made in determining what to report?

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1. What factors other than financial reporting and investor relations are affected by a firm's financial reporting decisions?

The firm's financial reporting decisions fall into two basic categories: required disclosures and voluntary disclosures. The firm's decision on the required disclosures can have legal ramifications. If they fail to comply with what is required by SEC reporting, they run the risk of SEC enforcement.

The firm's voluntary reporting, those disclosures that they choose to make but are not required to make, can impact their reputation in the market place but also make them vulnerable to competitors. What they report is in the public domain and so their competitors ...

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