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Principles and Practices of Banking - 3 (JAIIB)
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Which concept is an exception to the principle of full disclosure?
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A
Materiality
💡 Explanation:
According to this concept, the business can ignore the disclosure of insignificant items to ease the work of accounting such as payment for postage stamps worth Rs. 20 may be considered as utilised and there is no need to record any stamps which are not utilised yet from this transaction.
Realisation concept advocates for recording the change in the value of an asset only when it is realised.
Cost concept states that the assets should be recorded in the books at cost price minus depreciation if any. According to conservatism, the business should not anticipate any profit but provide for all possible losses.