Question

Northridge Hospital is investor - owned , for-profit hospital . The hospital maintains its financial records on a calendar year . In February , after the end of the latest fiscal year, but prior to the date of the release of its financial statements for the year , Northridge suffers a fire that causes the closure of one of the patient wings . Repairs will take a minimum of 90 days to complete to allow the wing to be reopened . Which accounting principle requires that this event be disclosed in the hospital's financial statements ?​

Answer 1

The accounting principle that requires this event to be disclosed in the hospital's financial statements is the environmental postulate principle, to understand more we need to know .......

Environmental postulates

In an axiomatic enunciation of Accounting Theory, the environmental postulates would be, according to Iudícibus, Martins, Gelbcke, the postulates or axioms themselves. In fact, the environmental postulates solemnly enunciate the

• Social
• Economic
• and Institutional

conditions within which accounting operates; they escape the restricted domain of accounting, to be inserted in the broader feud of Commercial Sociology and Law, as well as Economics and other sciences. They predispose Accounting, in what follows, to assume this or that posture, although the conditioning is not as restricted as one might imagine.

With this information, we can conclude that the accounting principle used in this situation would be the environmental postulate, emphasizing that the accountant assumes a posture.

Learn more about Acconting in brainly.com/question/5640110