difference between full disclosure principle and materiality concept

Full Disclosure Principle: According to this principle, apart from legal requirements all significant and material information relating to the economic affairs of the entity should be completely disclosed in its financial statement and accompanying footnotes.

Materiality PrincipleAccording to this principle, only those items or information should be disclosed that have material effect and relevant to the users. So, item having an insignificant effect or being irrelevant to user need not be disclosed separately, these may be merged with other item.


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