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  2. Full disclosure statement is a statement that provides all the information necessary for an investor to make an informed decision1. Examples of full disclosure include23:
    • The nature and justification of a change in accounting principle
    • The nature of a non-monetary transaction
    • The nature of a relationship with a related party with which the business has significant transaction volume
    • The amount of encumbered assets
    • The amount of material losses caused by the lower of cost or market rule
    • A description of any asset retirement obligations
    Learn more:
    Example of Full Disclosure: The entity might lose large contracts with its customers to its competitor. And the subsequent loss of contract could turn the entity into bankruptcy. In such a case, management probably doesn’t want outsiders, especially investors, to know the real situation of an entity.
    www.wikiaccounting.com/full-disclosure-principle/

    Several examples of full disclosure involve the following items:

    • The nature and justification of a change in accounting principle
    • The nature of a non-monetary transaction
    www.accountingtools.com/articles/the-full-disclosur…
    Examples – Guitar Emporium is a nationwide guitar retailer. It reports $10.5M in guitar inventory last year. In the notes of its financial statements, GE should disclose its significant accounting policies. This would include its inventory evaluation methods.
    www.myaccountingcourse.com/accounting-principl…
     
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