The convention of full disclosure requires that financial statements present all the information relevant to users' understanding of the statements.

Question

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Full disclosure is a key accounting principle that requires financial statements to present all relevant information that could impact users' understanding of the organization's financial position and performance. This information must be accurate, complete, and presented clearly and transparently in the financial statements, notes, and other disclosures. Failure to follow full disclosure could result in misinterpretation of the financial statements and harm the organization's reputation, trust, and credibility.

The Convention of Full Disclosure Requires That Financial Statements Present