In August 2011,Eggs 'R' Us was forced to destroy all its poultry as a result of an outbreak of Newcastle disease.In the annual report for the year ended 30 June 2012,published in late August,a footnote revealed the loss.This is an example of the concept or principle of:
A) disclosure
B) prudence
C) consistency
D) understandability.

Question

Quizplus · Accepted Answer

The disclosure principle requires that all relevant and material information should be included in the financial statements or footnotes. In this case, the disclosure of the loss incurred due to the outbreak of Newcastle disease is a material fact that should have been disclosed to the users of the financial statements.

In August 2011,Eggs 'R' Us Was Forced to Destroy All