Financial Disclosure

Financial disclosure refers to the act of providing detailed and transparent information about an organization's or individual's financial status, performance, and relevant activities. This information is shared to ensure transparency, enable informed decision-making by investors, stakeholders, or regulatory bodies, and maintain trust in financial markets or government operations.

In a corporate or business context:

• Financial disclosure involves releasing comprehensive data such as financial statements (balance sheet, income statement, cash flow statement, and statement of changes in equity), notes to the financial statements, and other relevant information about the company’s financial health and risks.
• These disclosures are typically made periodically (e.g., quarterly or annually) and include reports like annual reports, quarterly reports, earnings releases, and regulatory filings.
• The purpose is to provide investors, lenders, and other stakeholders with the necessary information to make informed investment or lending decisions.

In a government or public employment context:

• Financial disclosure requires certain federal employees to report their financial interests, including assets, income, liabilities, employment agreements, outside activities, and gifts.
• This is done to identify and resolve real or perceived conflicts of interest, ensuring ethical conduct in government service.
• There are two main types of financial disclosure reports for federal employees:
  • Public financial disclosure reports (OGE Form 278e) for senior or high-level employees, which are publicly available.
  • Confidential financial disclosure reports (OGE Form 450) for employees in positions that require confidentiality, not publicly available.
• Filing deadlines and requirements depend on the employee’s position and duties, with initial reports due within 30 days of assuming the position and annual updates thereafter.

In summary, financial disclosure is the transparent reporting of financial information to promote accountability and informed decision-making, whether in corporate finance or government ethics contexts.