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 situation of environmental damage being disclosed in the financial statements demonstrates the company adhering to the full disclosure principle, which requires all relevant information to be disclosed to the users of financial statements.

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