What is Full Financial Disclosure?
Full financial disclosure is the accounting principle that requires a company to report all information that could materially affect a user’s understanding of its financial statements, either in the figures themselves or in the accompanying notes.
How It Works
- Disclose accounting policies, estimates, related parties, contingencies, and subsequent events.
- Add segment, geographic, and risk disclosures where material.
- Apply IFRS-specific disclosure requirements for instruments, leases, revenue, and impairment.
Saudi Context
The CMA enforces strict disclosure rules for Tadawul-listed companies, including quarterly results, material events, related-party transactions, and ESG metrics under the Saudi Exchange Sustainability Guidelines.
Example
A Saudi food company discloses a pending ZATCA assessment of SAR 12 million in its notes as a contingent liability, even though no provision is yet booked.