Advertisements
Advertisements
Question
Explain the complete disclosure principle.
Short Note
Solution
- The complete disclosure principle requires that all significant information relating to the economic affairs of an enterprise must be fully and completely disclosed in the financial statements and their accompanying footnotes. Financial statements are meant for the use of owners, investors, suppliers, lenders, bankers, employees, government and others.
- While preparing financial statements, it should be ensured that significant facts or information are not omitted. It has special significance in case of joint stock companies in which ownership and management are separate. Items which do not find a place in accounting statements are shown in the balance sheet by way of footnotes.
shaalaa.com
Generally Accepted Accounting Principles (GAAP)
Is there an error in this question or solution?
APPEARS IN
RELATED QUESTIONS
Accounting principles are necessary due to which of the following reasons?
______ is the language of business.
On the basis of this concept, only those transactions are recorded in accounts which can be expressed in terms of money.
According to Business Entity Concept:
Explain 'Matching Concept' of GAAP.
Explain the money measurement principle of accounting.
Why are Generally Accepted Accounting Principles (GAAP) needed?
Explain the revenue principle.
Explain the principle of consistency.
Name any four concepts of GAAP.
