Financial disclosure is crucial for several reasons:
Transparency: It ensures that all stakeholders have access to the same information, thereby fostering a fair and transparent market environment. Decision Making: Investors and creditors rely on disclosed financial information to make informed decisions about investing in or lending to the company. Regulatory Compliance: Companies are required to adhere to regulations set by governing bodies, such as the Securities and Exchange Commission (SEC) in the United States. Corporate Governance: Proper disclosure is a key component of good corporate governance, helping to prevent fraud and mismanagement.