The controller for Lafayette Inc. recently commented, “If I have to disclose our segments individually, the only people who will gain are our competitors and the only people that will lose are our present stockholders.” Evaluate this comment.

The timely release of all facts about a company that may influence an investor's decision is referred to as disclosure. It contains both positive and negative news, statistics, and operational data that affect the company's operations.

A major reason for not providing segment information is that competitors will be able to decide on profitable segments at that time and enter that item line themselves. In the event that this happens and the other company takes effect, Lafayette Inc. Let's show stockholders can bear.

This address should underline to the student that the answers are not consistently dark and white. Without a doubt, the disclosure of sections gives some essential information, but some disclosures are confidential.