What is Voluntary disclosure

Voluntary disclosure is to disclose of so many information which is not required as per law or accounting standards. If board directors, company management are ready to voluntary disclosure of some information, accountant can help them and public can get awareness. If any company want to disclose more information of financial statements, it can use its footnote.

Voluntary disclosure is excess information than information which is provided under full disclosure principle.

Example 1

to make the financial statements of a company  is necessary and it is also necessary to disclose it through public it via media newspaper. But it is not necessary for company is to inform about the planning or performance of new product or products. But company management can disclose it also in its annual report, so this information is voluntary disclosure.

Company management can disclose any information voluntary for gaining the trust of its investors, customers, employees and public.

Example 2

If you did business with Google in past for online successful business, you know its one TOS is not to disclose information shared between you and Google? Why? It will sure decrease the trust of Google Company and people are finding new substitutes for getting online success.  But I have done business with other company and they have no problem to share any of its business confidential information. All such company are better who allow to share information as per their voluntary disclosure policy.

Example 3

Why do you trust on me? Only because I shared all the information with you. I have kept voluntary disclosure policy on this website. In the business of any company, there are lots of accounting information which are top confidential, if company will disclose it, investor will invest in that company with more amount.

Example 4 

Future estimations relating to sales. Financial statements only explain past data. Investors want to know future estimations of its sales. Investor can also estimate the sales of company in future but if a company will disclose it voluntary, it will be helpful for investor for taking better investment decision. Because company has lots of tool for finding more correct amount in estimation.

Example 5 

Voluntary disclosure can be understand from Govt. of India's VRS. It means, all those who will tell their black money, Govt. of India give reward under voluntary disclosure scheme. Like this, in every business or accounting department, there are lots of top secret information which a company can share with public with disclosing its normal financial statements.


We should also take care, if we open the our home's door without lock, someone can steal our money also. Company's competitor can take its benefit. So, company has to become careful which information has to disclose voluntarily and which not.

 Resource of Above Content : Accounting Dictionary 






access account accountant Accounting accounting definitions accounting ebook Accounting education accounting procedure accounting process outsourcing Accounting Software advance advertising africa Amalgamation amendments announcements Annuity assets audit auditing Australia B.Com. balance sheet bank Bank reconciliation banking basic accounting BBA benefits best bill black money blog bloggers book keeping bookkeeping Branch Accounting - full tutorial budget Budget variance business businessman CA calculator canada capital capital budgeting career cash cash book cash flow statement Chiense children china class coaching coins college commerce commerce students company computer computer accounting conference Contact vinod kumar Control Your Spending corporate accounting cost cost accounting cost center cost centre CPA credit credit card cs currency data Debit and credit debit cards debt debtor degree depletion depreciation Diwali Messages documents dollar domain Downloads Dubai e-accounting earning education Education Loans email employee EPF ERP euromoney examination excel excise duty expenses facebook factor of loan fans feature fifo FII fiji finacle finance Finance Journal Entries Financial financial accounting fire insurance flickr flow forensic forex formula france fraud free fun function fund GAAP GDP gdr germany gold goodwill goodwill accounting google google apps Google Adsense google apps google base google buzz google calendar Google docs google finance google fusion tables google talk govt. GST guide health Hindi Hindi Language history holding company How to treat FBT in Tally 9 HRA ICAI ICAWI ICICI Bank IFRS income income statement Income Tax India indian railway Indonesia inflation inflation accounting infographics information inspiration insurance insurance accounting Intangible interest international Internet Introduction of Tally 9 inventory investment investment in Shares invoice IT Japan Job costing journal entries Journal Entries eBook Help Kalculate keyboard kindle kuwait laptop law LBT learning lease lecture ledger leducation Leverage Analysis liabilities lifo linkedin loan logical point loss loss of profit M.Com. m.phil malaysia management accounting manual accounting manufacturing account market marketing mastercard material MBA MCA media migration mobile money ms word ms. excel multi currency in tally 9 Multicurrency Accounting mutual fund national security new and sacrifice ratio new york times new zealand news NGO nonprofit-accounting North Georgia Mountains NPV NSE odbc office oman online application online accounting Online Accounting Course otcei pakistan parents Partnership pay pal pdf Personal Finance pie chart pie chart of income pnb podcast ppf presentation price privacy policy prize money prof. vinod kumar profit profit and loss account project management provision purchase puzzles quickbooks Quote quotes quotes of svtuition rating agency ratio analysis RBI readers real estate rectification of errors remote control reports reserves responsibility accounting retirement revenue Revenue reserves review risk rupees salary sale saudi arabia saving sbi scholarship school SEBI security service tax share share trading Shares shri lanka singapore sms social accounting society solution South Africa stock stock exchange structure student students study subsidiary company svtuition swiss bank tally tally 9 Tally 7.2 Tally 9 Tally.ERP 9 tanzania tax Tax Accounting TDS teacher teaching technology test testimonial testimonials thailand tips trading trading on equity transaction trend trial balance truthfulness tuition twitter UAE UGC - NET Commerce UK United Arab Emirates university usa valuation VAT Video Voucher and vouching Wealth wikipedia working capital youtube
Accounting Education: What is Voluntary disclosure
What is Voluntary disclosure
Accounting Education
Not found any lecture VIEW ALL Continue reading Reply Cancel reply Delete By Home PAGES Lectures View All RECOMMENDED FOR YOU Category ARCHIVE SEARCH ALL Lectures Not found any lecture match with your request, please help to write it and send it to our email at vinod@svtuition.org for making this website free accounting and finance encyclopedia. Back Home Sunday Monday Tuesday Wednesday Thursday Friday Saturday Sun Mon Tue Wed Thu Fri Sat January February March April May June July August September October November December Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec just now 1 minute ago $$1$$ minutes ago 1 hour ago $$1$$ hours ago Yesterday $$1$$ days ago $$1$$ weeks ago more than 5 weeks ago Followers Follow THIS CONTENT IS PREMIUM Please share to unlock