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Full disclosure principle
Full disclosure principle
A requirement that financial statements provide all materially relevant information concerning the reporting entity.
Unlike in the show The Office (episode where Michael announces to everyone that Jim and Pam are dating) full disclosure is preferred in accounting.
Summary of significant accounting policies
Summary of significant accounting policies
Sometimes there are multiple ways to account for transactions under GAAP. This disclosure explains to the users of the financial statements the choices made.
Subsequent events
Subsequent events
Something major happens between a company's year-end and the date on which it discloses its financial statements to the public.
Related party transactions
Related party transactions
Transactions with owners, management, families of owners or management, affiliated companies, and other parties that can significantly influence or be influenced by the company.
Other disclosures
Other disclosures
Fraud: Theft of assets or the intentional misstatement of the financial statements.Â
Illegal acts: e.g., bribes.
Some financial statement items require explanatory notes.
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