Question

What is the key guideline from the Special Committee on Financial Reporting regarding information that could harm a company's competitive position?

A) All information must be disclosed
B) Only positive information should be disclosed
C) Information that significantly harms the company's competitive position should not be required to be reported
D) Information should be reported only if it significantly benefits the company

Answer 1

The key guideline from the Special Committee on Financial Reporting is that information that significantly harms a company's competitive position should not be required to be reported.

Step-by-step explanation:

The key guideline from the Special Committee on Financial Reporting regarding information that could harm a company's competitive position is C) Information that significantly harms the company's competitive position should not be required to be reported. This means that if disclosing certain information would put a company at a significant disadvantage in the market, they are not required to report it. This guideline recognizes the importance of protecting a company's competitive position while still emphasizing the need for transparency in financial reporting.