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On 25th March, 2017, a fire broke out in...

On 25th March, 2017, a fire broke out in the premises of Kamal Ltd. And destroyed a part of its plant and machinery. On account of this, a sharp decline in production for the next six months is expected. The company did not disclose this fact in its annual for the year ended 31st March, 2017. What is your opinion about his omission?

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The company has violated the convention of full disclosure. Loss of Plant and Machinery in the books at a price it was acquired.
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DK GOEL-ACCOUNTING PRINCIPLES-HIGHER ORDER THINKING SKILLS (HOTS) QUESTIONS
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  14. On 25th March, 2017, a fire broke out in the premises of Kamal Ltd. An...

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  15. R Ltd. Purchased 500 Sq. Metre Land for ₹1.5 crore to build a factory....

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