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Importance of Employee Benefits Disclosure in Annual Reports

   

Added on  2023-06-04

8 Pages664 Words246 Views
Accounting Theory and
Current Issues
Date: 26th Sep, 2018

Article 1
The first article that has been selected is “The negative effect of an accounting
standard on employee welfare: the case of McDonnell Douglas Corporation and FASB
106” . This study explains in detail the negative repercussions on the employees when
employee well-being decisions are taken by the respective employers purely
considering the economic considerations. The management invariably tends to focus
solely on the paying off the employee benefits under the statutes and the compliance
framework which effects the overall quantum of benefits paid to the employees
(Richard & Stephan, 1995).

Article 2
The second article that has been selected is “Attaining legitimacy by employee
information in annual reports”. The article is documented and presented by two
people, Pamela and Tamara. One of the main areas of focus of this article is to lay
focus on the disclosure by the company of all information that relates to the benefits
paid to the employees in the audit report of the company. The image of the company
takes a boost in the society if there remains a transparency in the acknowledging the
remuneration the company pays to towards its human capital (Pamela & Tamara,
2013).

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