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Full disclosure principal

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What is the full disclosure principle in accounting? Why has disclosure increased substantially in the last 10 years?

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https://brainmass.com/business/disclosure-principle/full-disclosure-principal-90275

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Full disclosure principal needs significant facts affecting the judgment should be disclosed. Moreover the respect of truth has got great impact in the workplace. It creates environment of harmony, faith and cooperation. Infact I can say that it is one of the important characteristics of the successful organizations. Thus The objective of it is :

* To promote investor confidence;
* To provide investors with material information
* To improve the quality and timeliness of disclosure to investors

Trend of Disclosure increasing

With the recent debacle of various organizations like ENRON, WorldCom and also there was questionable role of financial reporting. These companies have shown all of us how the dishonest, corrupted the business world has become and the men that lead these companies are clear examples of what you do not want to become. Executive position begat power and if it is not handled correctly that power will begat corruptive disaster. (Nahavandi, 2003)

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Solution Summary

This explains the Full disclosure principal

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