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Principle of Disclosure
PRINCIPLE OF FULL DISCLOSURE
✓The full disclosure principle is a primary accounting concept that compels business
organizations to report all necessary information concerning their financial
statements and any other essential data to all the recipients of the information that
are accustomed to using the accounting information (Hosseiniol &
✓The primary purpose of the full disclosure principle in the accounting field is to
allow different companies provide all the relevant information and any other
material financial data with the outside individuals.
✓The sharing of the accounting information with the outsiders is a result of the need
of the outsiders to gather more data about the performance of the organization before
deciding on their investment plans.
✓The outsiders rarely have a chance to analyze the performance of the company as the
outsiders only know little details about the firms.
• The primary details that the principle of full disclosure focuses on comprise of
the international and local business deals the reporting firm has accomplished
the loans and the cont...
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