CHAPTER 3: THEORY BASE OF ACCOUNTING ( ACCOUNTING PRINCIPLES, ACCOUNTING STANDARDS, IFRS, GST)
C HAPTER 3 THEORY BASE OF ACCOUNTING,ACCOUNTING STANDARDS, IFRS AND GST LEARNING OUTCOMES: INTRODUCTION ACCOUNTING PRINCIPLES ACCOUNTING STANDARDS INTERNATIONAL FINANCIAL REPORTING STANDARDS(IFRS) GOODS AND SERVICES TAX (GST) INTRODUCTION (CLICK FOR THE AUDIO) 8. FULL DISCLOSURE PRINCIPLE : (HEAR ABOUT THE PRINCIPLE) According to this principle, the financial statement should completely disclose all the significant information relating to the economic affairs of an enterprise. • The disclosure can be done either in the financial statements or in the footnotes like in case of contingent liabilities. • Full Disclosure is not only a legal requirement, but it also makes the accounting system fair and transparent. • As per the Companies Act, every company is required to disclose essential information in the financial statements. • Incomplete information hampers the basic purpose of financial statemen...