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A company lost vital machinery in an accident on 2nd March , 2019 which will have adverse impact on its production capacity . As a result , it is likely to loose business to its competitors . The company has not disclosed this fact in its annual report forfor the year ended31 st March ,2019 . Do you think it is complying with the Convention of Full Disclosure? |
| Answer» Solution :No , the company is not COMPLYING with the Convention of Full Disclosure as LOSS of vital machinery has adverse impact on the business and THUS , on its profitability . It being material information should have been DISCLOSED. | |