In light of the full disclosure principle, investors and creditors need to know the balances for assets, liabilities, and equity, as well as the accounting policies adopted by management to measure the items reported in the statement of financial position.
Instructions
Access the IFRS authoritative literature at the IASB website (eifrs.iasb.org/). When you have accessed the documents, you can use the search tool in your Internet browser to respond to the following questions. (Provide paragraph citations.)
(a) Identify the literature that addresses the disclosure of accounting policies.
(b) How are accounting policies defined in the literature?
(c) What are the guidelines concerning consistency in applying accounting policies?
(d) What are some examples of common disclosures that are required under this statement?