Full Disclosure – providing information that is of sufficient importance to
influence the judgment and decisions of an informed user.
Provided through:
• Financial Statements
• Notes to the Financial Statements
• Supplementary Information
Components of Disclosure of Information
Following are some of the information that can be disclosed in the financial
statements:
1. Acknowledging any change in accounting standards or principles.
2. Accounting policies that are followed
3. Presenting all financial statements in detail
4. Details on the level of inventory of the business.
5. The nature of relationship between the business and related party/parties of the
organization.
6. Disclosing the nature of non-monetary transactions.
7. Circumstances that lead to the impairment of goodwill.