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Prepare a 700-word paper in which you answer the following question: What is the full disclosure principal in accounting? Why has disclosure increased substantially in the last 10 year?
Include an explanation of the need for full disclosure in financial reporting and identify possible consequences of failing to properly disclose certain items in financial statements. Make sure the paper is fully documented and foot noted.© BrainMass Inc. brainmass.com October 9, 2019, 10:40 pm ad1c9bdddf
The full disclosure principle in accounting is explained as follows:
If certain information is important to an investor or lender using the financial statements, that information should be disclosed within the statement or in the notes to the statement. It is because of this basic accounting principle that numerous pages of "footnotes" are often attached to financial statements.
In layman terms, full disclosure principle means that corporations should disclose and inform all material information affecting the financial statements to the stakeholders of the organization to ensure full transparency in accounting operations and to enable stakeholders such as investors, lenders and shareholders to take informed decisions. It is basically an ethical and honest way to convey stakeholders about the events or material happenings affecting the financial statements ...
What is the full disclosure principle in accounting?