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In recent years, an increasing number of business enterprises are including in their annual reports to shareholders a separate summary of the major accounting policies followed in preparing the financial statements. This disclosure has been favorably received by users of financial statements and endorsed by organizations representing corporate business. Practice by those entities that present summaries of accounting policies has varied considerably. Some entities present the summary of accounting policies as an integral part of the financial statements; others present it as supplementary information. In addition, both the nature and the degree of disclosure vary, and related guidelines are lacking. In view of the increasing recognition of the usefulness of disclosure of accounting policies, the Accounting Principles Board has considered whether this disclosure should be required in financial statements and whether guides should be established for the form and scope of disclosure. This Opinion sets forth the Board's conclusions.
Disclosure in accounting
Accounting | Taxation
American Institute of Certified Public Accountants. Accounting Principles Board, "Proposed APB opinion : Disclosure of accounting policies;Disclosure of accounting policies; Exposure draft (American Institute of Certified Public Accountants), 1971, Dec. 27" (1971). Statements of Position. 344.