The full disclosure principle requires that the notes to the financial statements report a change in accounting method for inventory.

Question

Quizplus · Accepted Answer

The full disclosure principle requires that any significant accounting policies, transactions or events that affect the financial statements should be disclosed in the notes to the financial statements. A change in accounting method for inventory is a significant accounting policy and should be disclosed in the notes to the financial statements.

The Full Disclosure Principle Requires That the Notes to the Financial