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What is the importance of disclosure in financial statement?

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Question added by manaf almas , Auditor , DAR AL NUZUM PUBLIC ACCOUNTANTS
Date Posted: 2013/09/23

It is a mandatory part of financial statements according to IAS/IFRS

meaning you cannot call it financial statements unless it has all the disclosures.

Financial Statements consist of

  1. Income Statement or Statement of Affairs
  2. Balance Sheet or Statement of Financial Position
  3. Cash flow statement
  4. Statement for Changes in Equity
  5. Notes or Disclosures

 

Sofia Paulus
by Sofia Paulus , Student , I don't work. I am a student

I don't know anything about it 

Prince Ninan
by Prince Ninan , Audit Executive , Lewis & Pecker

Disclosure helps in better understanding of financial statements.

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