Question

According to the Full Disclosure Principle, all thins that can materially affect the financial status of the firm must be disclosed somewhere in the financial statements.

True / False.

Answer 1

Answer: True

Explanation: The full disclosure principal states that any material information, that can affect the judgement of a rational investor or other stakeholder, must be stated in the financial statement.

These disclosures can be made on press releases, supplementary reports and other such communications etc.

Hence, from the above we can conclude that the given statement is true.