What are the potential proprietary costs

Reference no: EM13129214

Management frequently objects to disclosing additional information on the grounds that it is proprietary. For instance, when the FASB proposed to expand disclosures on (a) accounting for stock-based employee compensation (issued in December 2002) and (b) business segment performance (issued in June 1997), many corporate managers expressed strong opposition to both proposals. What are the potential proprietary costs from expanded disclosures in each of these areas? If you conclude that proprietary costs are relatively low for either, what alternative explanations do you have for management's opposition?

Reference no: EM13129214

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