Requires about 250 words for this complete discussion with good example.
Examine the full disclosure principle in financial reporting and discuss why it is important and how should it be used in financial reporting. Choose an example of poor accounting practices and identify the consequences of not following the full disclosure principle.
Examine the full disclosure principle in financial reporting and discuss why it is important and how should it be used in financial reporting.
Full disclosure principle cites that anything that would be required for the reader to get the full picture of reporting amounts should be included in the financial statements. In some cases the footnotes or added disclosures are specified, such as future lease payments on long term rentals. In other cases, the preparer of the financial statement (or their auditors) must use judgment to decide if the amounts reported require some discussion (added disclosure) ...
Your discussion is 295 words plus three references and mentions Lehman Brothers 2007 financial statements as an example.