The operations of a resource company's oil sands operations results in environmental damage.While the extent of the damage cannot be determined at this time, the situation is disclosed in its financial statements.This BEST demonstrates
A)the application of professional judgement.
B)the full disclosure principle.
C)representational faithfulness.
D)good management stewardship.

Question

Quizplus · Accepted Answer

The full disclosure principle requires that all relevant and necessary information for understanding a company's financial statements be included, which is why the environmental damage is disclosed even if the extent is not yet determined.

The Operations of a Resource Company's Oil Sands Operations Results