The principle of faithful representation

 

a)Requires that information be complete, neutral and free from error, so assets and income are not overstated, and liabilities and expenses are not understated

b)Requires that a company use the same accounting methods period after period

c)Requires that revenues and costs be reported in the period in which they are earned or incurred

d)Requires that all items of a material nature be included in financial statements

e)Requires that all inventory items be reported at full cost