The principle that the financial information provided by a company should not omit anything material, ensuring the financial statements are comprehensive and useful for decision-making.
General purpose financial statements are annual accounts and reports prepared by companies to serve the needs of a wide range of users, often regarded as compromise documents.
The increasing amount of financial information that companies are required to provide, some of which is beyond the user's ability to assimilate, analyze, and interpret.
Simplified financial statements provide a streamlined version of annual accounts, making financial information accessible to readers who may not possess extensive financial knowledge.
Understandability is a core principle in financial reporting which ensures that financial information provided by a company can be comprehended by individuals with a reasonable knowledge of business and accounting.
