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Accounting Framework - Convention of Disclosure
The doctrine of disclosure suggested in which all accounting statements should be honest and to that end, full disclosure of all important information must be made.
This doctrine lays emphasis on the fact, materiality, objectivity and consistency of accounting data in sequence to disclose fully the true and fair view of the economic activities of a firm for a particular period. This doctrine is becoming more popular of present because most of the companies are joint stock companies and listed on the stock exchanges.
Further to the financial statements the reporting of accounting information is made through means of comments, descriptive captions, footnotes, supplementary schedules, etc. in financial statements.
Breaks in Specific Cost of Capital: The specific costs of capital may also be affected by the amount of finance the firm wants to raise. As the amount of financing increases, the
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