Adequate Disclosure

question 14

Essay

Adequate disclosure
(a)Briefly explain what is meant by the principle of adequate disclosure.
(b)How does professional judgment enter into the application of the principle of adequate disclosure?
(c)List 5 types of information that a publicly held corporation generally would be required to provide according to the concept of adequate disclosure.

---

Definitions:

Adjusting Entries

Journal entries made in accounting records at the end of an accounting period to update account balances before preparing financial statements.

Net Income

The residual financial benefit a company experiences after expenses and taxes are subtracted from its income.

Fiscal Year

A 12-month period used for accounting and financial reporting purposes, which may or may not align with the calendar year.

Rent in Advance

Payment made for a rental property or equipment before the period it covers, usually as a security measure or requirement by the landlord.