Question

Describe trends in voluntary non-financial disclosures the impact it has (or has not) had on stakeholders. What does this mean in terms of full disclosure and going concern?

Answer 1

Disclosure of information in Financial statements is upmost important from the angle of stakeholders. Non-financial reporting is a trend nowadays.

Non-financial reporting means disclosure of company's social, environmental and human rights information. To refer a few such non-financial issues are Education, poverty, freedom expression, right to information, health and safety, sexual harassment, extent of discrimination, etc.

A report on these is considered the utmost importance in recent days. Reporting on these is a good way to improve risk management, and improves long term socio-environmental competitiveness. The disclosure of non-financial information enables stakeholders more confident in their rights and helps in restoring trust in business. Hence, stability and fortune of stakeholders business is influenced by disclosure of non-financial matters.