Question

On 25th March,2017. a fire broke out in the premises of Kamal Ltd. and destroyed a part of plant and machinery. On account of this, a sharp decline in production for the next six months is expected. The company did not disclose this fact in its annual report for the year ended on 31st March,2017. Which principles is being voilated?.



Full disclosure principles

Historical cost principles

Materiality principles

Buisness entity principles

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Answer 1

Answer:

full disclosure concept, all the facts must be disclosed