In this module, you will learn about the concepts of disclosure and materiality. You also studied the financial reports. You are asked to check the library or other financial data posted on the Internet, examine the reports attached to financial statement of a company of your choice, and share with us briefly the items generally included in that company annual report. Do not forget to indicate your source clearly. Why business retains a part of its profit in the form of retained earnings rather than distribute it to its owners? Can you share with us your comprehension of materiality concept and what are the advantages or disadvantage of its implication for you as accountant? Is there what is called temporary or nominal accounts as opposed to permanent or real accounts ? Please explain.
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