What does the full disclosure principle require companies to do?

The full disclosure principle requires companies to provide all information that could influence the decisions of users of their financial statements. This means that companies must disclose any and all circumstances and events that could have a significant impact on their financial performance or position. This includes relevant data that might affect the understanding of the financial statements, such as significant changes in accounting policies, contingent liabilities, or unusual transactions.

By following this principle, companies ensure transparency and allow stakeholders, such as investors, creditors, and regulators, to make informed decisions based on comprehensive and accurate data about the company's financial condition. Disclosures can be made within the financial statements or in the notes accompanying them, thus enhancing the clarity and reliability of financial reporting.

The other options focus on limiting disclosures, either by confidentiality, restricting disclosures only to audited information, or confining them to specific reporting periods, which would not align with the comprehensive nature of the full disclosure principle that aims for transparency in all significant financial matters.