What is the full disclosure principle?
Understand the Problem
The question is asking for an explanation of the full disclosure principle, which relates to transparency and honesty in various contexts, such as finance or law.
Answer
The requirement to disclose all relevant information in financial statements.
The full disclosure principle refers to the requirement for businesses to disclose all relevant information in their financial statements to enable users to make informed decisions.
Answer for screen readers
The full disclosure principle refers to the requirement for businesses to disclose all relevant information in their financial statements to enable users to make informed decisions.
More Information
This principle helps maintain transparency and trust in a company’s financial reporting by ensuring that all significant information is disclosed. This information is often included in footnotes within financial statements.
Sources
- Full Disclosure Principle - Definition, Requirements - corporatefinanceinstitute.com
- Full Disclosure: What it is, How it Works, Example - investopedia.com
- Full Disclosure Principle | Definition + Concept Examples - wallstreetprep.com
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