Wednesday, June 10, 2015

FULL DISCLOSURE PRINCIPLE

The full disclosure principle specifies that there should be complete and understandable reporting on the financial statements of all significant information relating to the economic affairs of the entity. To meet the requirements of this principle, all published financial statements are supported by a section called 'Notes to the Financial Statements’. Accounting information relating to a specific period must be complete and sufficient to make them useful and not misleading to the average users. 

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