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2 one GAAP ( other than revenue recognition) is PRINCIPLE OF FULL DISCLOSURE
ACCORDING TO THE PRINCIPLE OF FULL DISCLOSURE THE ACCOUNTANTS SHOULD GIVE DUE EMPHASIS IN DISCLOSING THE FACTS AND FIGURES OF THE ENTITY CONCERNED WITH THE HELP OF FINANCIAL STATEMENTSOR THROUGH REPORTING THE USERS OF ACCOUNTING IN SUCH A FASHION THAT THE USERS OF ACCOUNTING INFORMATION CAN TAKE NECESSARY DECISIONS.
SALIENT FEATURES OF FULL DISCLOSURE ARE
- REPORTING FUNCTION: THIS PRINCIPLE GIVES EMPHASIS ON REPORTING FUNCTIONS OF THE ACCOUNTANTS RATHER THAN THEIR TECHNICALITIES
- RELEVANT FINANCIAL DATA: ACCORDING TO THIS PRINCIPLE,AS FAR AS POSSIBLETHE MOST RELEVANT FINANCIAL DATA SHOULD BE SUMMARISED IN QUANTITATIVE TERMS AND BE PRESENTED IN FORMAL STATEMENTS
- QUALITATIVE INFORMATION:IN ADDITION TO THE QUANTITATIVE DATA,FOOTNOTES,SUPPLEMENTARY SCHEDULES,STATEMENTS,REPORTS SHOULD BE USED TO EXPRESS RELEVANT QUALITATIVE INFORMATION
- OBJECTIVES: THE PRINCIPLE REQUIRES THE STATEMENTS TO REVEAL THE INFORMATION,WHICH IF WITHHELD,MIGHT MISLEAD THE INVESTORS.THE OBJECTIVE OF THIS PRINCIPLE IS THAT FINANCIAL STATEMENTS SHOULD DISCLOSE ONLY RELEVANT INFORMATION
3 FOR REVENUE TO BE RECOGNIZED THE FOLLOWING CONDITIONS MUST BE SATISFIED
- RISK AND REWARD OF OWNERSHIP HAVE BEEN TRANSFERRED FROM THE SELLER TO THE BUYER
- THE SELLER HAS NO LONGER CONTROL OVER THE GOODS HE HAS SOLD
- THE COLLECTION OF PAYMENT FROM GOODS OR SERVICES IS REASONABLY ASSURED
- THE AMOUNT OF REVENUE CAN BE REASONABLY MEASURED
- COSTS OF REVENUE CAN BE EASILY MEASURED
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