The operations of a resource company's oil sands operations results in environmental damage.While the extent of the damage can not yet be determined, the situation is disclosed in its financial statements.This best demonstrates
A)The application of professional judgement
B)The full disclosure principle
C)Representational faithfulness
D)Good management stewardship

Question

Quizplus · Accepted Answer

The fact that the environmental damage resulting from oil sands operations is disclosed in the financial statements demonstrates the application of the full disclosure principle, which requires companies to provide all information that is relevant to the stakeholders in their financial statements.

The Operations of a Resource Company's Oil Sands Operations Results