Formatted: Font: 22 pt

Disclosure Dillemas Formatted: Centered

Leadership Comunication Formatted: Font: 14 pt, Bold

Home Work 2 – Deri Firmansyah – Eks 39 A

 What is The Disclosure? Formatted: Font: Bold

Disclosure is valuable information and how your company give the information to public or steakholder, Formatted: List Paragraph, Justified, Indent: Left: 0",
Hanging: 0.13", Bulleted + Level: 1 + Aligned at: 0.25"
its means financial information about a company in the financial statement.
+ Indent at: 0.5"
 What type the Disclosure? Formatted: Justified, Indent: Left: 0.13"
Formatted: Font: Bold
Any two type of disclosure that a company uses to provide information to steakholder, in the form :
Formatted: List Paragraph, Justified, Indent: Left: 0",
1. Mandatory Diclosure Hanging: 0.13", Bulleted + Level: 1 + Aligned at: 0.25"
This disclosure is information required by appliance regulation, including all disclosure of + Indent at: 0.5"
information in the financial statement. Various mortage regulation and laws that set up the rules Formatted: Font: Bold
on wich information must be revealetd to borrowers, as well as when and how the information Formatted: Justified, Indent: Left: 0.13"
must be disclosed
Formatted: List Paragraph, Numbered + Level: 1 +
2. Voluntry Disclosure Numbering Style: 1, 2, 3, … + Start at: 1 + Alignment:
The provision of information by a company’s management beyond requirements such as generally Left + Aligned at: 0.25" + Indent at: 0.5"
accpetd accounting principles and securities and Exchange Commission rule, where the Formatted: List Paragraph, Justified
information is belived to relevant to decision making of users of the company’s annual reports.
Formatted: List Paragraph, Numbered + Level: 1 +
Numbering Style: 1, 2, 3, … + Start at: 1 + Alignment:
Left + Aligned at: 0.25" + Indent at: 0.5"
 What the Disclosure Purpose? Formatted: List Paragraph, Justified
In the Big companies the disclose very important to give some information than smaller companies, the
Formatted: List Paragraph
information becomes material for purpose of disclosure information to external. Big companies are
likely to benefit profitably by disclosing optimal information in annual report, such as ease to market Formatted: Font: Bold

share and ease of obtaining fund form market. Formatted: List Paragraph, Indent: Left: 0", Hanging:
0.13", Bulleted + Level: 1 + Aligned at: 0.25" + Indent
 What the Disclosure function? at: 0.5"
For a big company disclosure have a function for : Formatted: Font: Bold
1. Provide relevant measurement Formatted: Justified, Indent: Left: 0.13"
2. Provide information to help investor and creditor to assess risk and potential changes
Formatted: Font: Bold
3. Provide information to investor in performing benchmarking company performance from year
to year Formatted: List Paragraph, Justified, Indent: Left: 0",
Hanging: 0.13", Bulleted + Level: 1 + Aligned at: 0.25"
4. Provide information on cash flow from year to year
+ Indent at: 0.5"
5. Helping investors assess the return of their investment
Formatted: List Paragraph, Justified, Indent: Left: 0.13"
The disclosure by company is beneficial to some interest in based on three categories of interest
in corporate interest, investor interest and national interest Formatted: List Paragraph, Numbered + Level: 1 +
Numbering Style: 1, 2, 3, … + Start at: 1 + Alignment:
Left + Aligned at: 0.25" + Indent at: 0.5"
Formatted: List Paragraph
 Advantages and disadvantages disclosure for company? Formatted: List Paragraph, Justified, Indent: Left: 0",
1. Advantages of disclosure? Hanging: 0.13", Bulleted + Level: 1 + Aligned at: 0.25"
For company benefits the disclosure is obtain new corporate cash or fund with a lower cost of + Indent at: 0.5"

capital, reduced risk of information for investors and creditors, owner diversification, Incrase Formatted: Font: Bold
liquidity and company value. Those investor and creditor are willing to buy securities at hugh price. Formatted: List Paragraph, Justified, Numbered +
As a result of the high price of the securities. The company’s capital cost become low. Level: 1 + Numbering Style: 1, 2, 3, … + Start at: 1 +
For the investors disclosure is useful to reduce the risk of information in the form of reduction of Alignment: Left + Aligned at: 0.19" + Indent at: 0.44"
investment decision making errors, Improvement in information held by third parties, investor Formatted: List Paragraph, Justified, Indent: Left: 0.44"
behavior and increased share liquidity. So investors become more trustworthy to companies that
give full disclousure, Consequenly the company securities become more to many investors and the
price will be rise.
For the national interest, given the lower cost of capital by companies, economic growth may
increase, employment opportunities are widespread and ultimately the standard of living
nationally will increase as well. With the reduced risk of information faced by investors, the capital
market becomes liquid. Capital market liquidity is required by the national economy because it can
help the allocation of capital effectively.

2. Disadvantages of disclosure Formatted: Font: Bold

Disclosure in business can be tricky thing. on the one hand, business are required to disclose certain Formatted: List Paragraph, Justified, Numbered +
of their management practices and financial performance if they wish to source funding or have Level: 1 + Numbering Style: 1, 2, 3, … + Start at: 1 +
their stock. On the other hand, disclosing to much can weaken a business competitive advantanges. Alignment: Left + Aligned at: 0.19" + Indent at: 0.44"
While there are general guidelines, accounting and kegal standrats estabilish pretyy clear Formatted: Font: Bold
disclosure rule of business. When evaluating or preparing financial disclosure, consult with a Formatted: List Paragraph, Justified, Indent: Left: 0.44"
certified public accountant or attonery.
Other disadvantages of disclosure is need cost because make a good financial statement need a
state agencies, owner no longer a have absolute control and lack liquidity.
Formatted: List Paragraph, Justified, Indent: Left: 0.19"
 How to the communicate the disclosure ? Formatted: List Paragraph, Justified, Indent: Left: 0",
Any various channel to distribution the information : Hanging: 0.13", Bulleted + Level: 1 + Aligned at: 0.25"
1. Press Realeses + Indent at: 0.5"
2. Comunication with your auditor Formatted: Font: Not Bold
3. Annual report Formatted: List Paragraph, Justified, Indent: Left: 0.13"
Formatted: List Paragraph, Justified, Numbered +
 Resume : Level: 1 + Numbering Style: 1, 2, 3, … + Start at: 1 +
As we can clearly disclosure hasa its advantages and disandvantages. Depending of what the company Alignment: Left + Aligned at: 0.13" + Indent at: 0.38"
is disclosing it will result either positive or negative consequence. Some of internal information will Formatted: List Paragraph, Justified, Indent: Left: 0.38"
generate higher benefitsif it is not shared with outsiders. Regaldess that fact, many times disclosure has
Formatted: Font: Bold
increased company’s value but the other hand disclosure its mean we share our weak point. Due to its
double nature, positive or negative effects, manager have to be realy careful of what they want to Formatted: List Paragraph, Justified, Indent: Left: 0",
Hanging: 0.13", Bulleted + Level: 1 + Aligned at: 0.25"
disclose. Management role it to find a perfect equilibrium, giving the best option for a company. + Indent at: 0.5"
Formatted: List Paragraph, Justified, Indent: Left: 0.13"