The convention of disclosure means that all material facts must be disclosed in the financial statement

Financial statement

A financial statement is a formal record of the financial activities of a business, person, or other entity. In British English—including United Kingdom company law—a financial statement is often referred to as an account, although the term financial statement is also used, particularly by...

s. For example, in case of sundry debtors not only the total amount of sundry debtors should be disclosed, but also the amount of good and secured debtors, the amount of good, but amount of unsecured debtors and amount of doubtful debts should be stated. Full disclosure does not mean disclosure of each and every item of information. It only means disclosure of such information which is of significance to owners, investors and creditors.