The full disclosure principle says that if a change is made to the inventory valuation method, the company should:

A) disclose the change.
B) show the effects of the change on profit and inventory valuation.
C) show justification for the change in a footnote on the financial reports.
D) All of these answers are correct.

Full Disclosure Principle

The accounting principle that requires companies to fully disclose on their financial reports changes in accounting procedures and methods along with effects of the change as well as justification for change.

Inventory Valuation Method

The approach used to assess and report the value of a company's inventory, including methods such as FIFO (First In, First Out), LIFO (Last In, First Out), and average cost.

Financial Reports

Documents that provide an overview of a business's financial condition, including balance sheets, income statements, and cash flow statements.