Mandatory disclosure
Mandatory disclosure is information an entity is required to provide under applicable law, regulation or an adopted reporting framework. The obligation depends on the entity, jurisdiction, period and specific requirements. Identifying an item as useful does not itself make it mandatory, while meeting minimum requirements may not satisfy every stakeholder’s information needs.
Worked example
A company identifies the reporting requirements that apply to its size and listing status before preparing its annual disclosures, rather than assuming that the requirements for a larger listed group automatically apply.
Common mistake
Calling all good-practice disclosure mandatory or overlooking material information because it is inconvenient to report.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | SBL | Supporting | September 2026–June 2027 |