Adequate disclosure

Adequate disclosure is the concept that the complete package of an entity's financial statements and accompanying disclosures should provide all key information needed by users to understand the entity's financial situation. Users need an adequate level of disclosure to make good decisions regarding whether to provide credit to or invest in an organization. When there is an inadequate level of disclosure, it can mean that management is deliberately attempting to mislead the investment community.

Related Courses

Accountants' Guidebook 
New Controller Guidebook