Definition of Adequate disclosure:
Adequate disclosure in accounting practices mandates that all readers of a financial statement have access to pertinent data that would be deemed essential to understanding an entity's financial position.
Accounting concept that financial statements and their accompanying notes (footnotes) should cover all pertinent data believed essential to the readers understanding of the firms financial position.
Adequate disclosure is an accounting concept confirming that all essential information is included in financial statements for an investor or creditor to rely on when analyzing a company. Adequate disclosure refers to the ability for financial statements, footnotes, and supplemental schedules to provide a comprehensive and clear description of a company's financial position.
How to use Adequate disclosure in a sentence?
- A company's disclosure can include the annual financial results via a 10-K as well as ongoing quarterly results via a 10-Q.
- Adequate disclosure mandates that companies provide a comprehensive outlook of a company's financial position.
- Adequate disclosure is an accounting guideline for companies to report all essential information, including financial statements to investors.
Meaning of Adequate disclosure & Adequate disclosure Definition