Question

What is the definition of Discretionary Reporting ?

A) A systematic financial reporting approach.
B) Voluntarily disclosing financial information by choice.
C) Legal obligation for financial disclosure.
D) Automated financial data compilation.

Answer 1

Discretionary reporting refers to voluntarily disclosing financial information by choice.

Step-by-step explanation:

Discretionary reporting refers to the act of voluntarily disclosing financial information by choice. It is not a legal obligation but rather a decision made by a company to provide additional financial information beyond what is legally required.

For example, a company may choose to disclose information about their environmental impact or social responsibility initiatives even though it is not required by law. This type of reporting allows companies to demonstrate their commitment to transparency and accountability to stakeholders.