Adequate Disclosure Law and Legal Definition
Adequate disclosure refers to meeting the minimum essential data disclosure requirements of various laws, such as gift tax return disclosures in tax law. brokers' fees in securities law, and other disclosuer requirements. In the corporate context, it is the concept that financial statements and their accompanying footnotes should contain all the pertinent data believed necessary to the reader's understanding of a business's financial status.
For example, under IRS rules, a gift is considered adequately disclosed if the gift tax return contains the following information:
- a description of the transferred property and any consideration received by the transferor;
- the transferor's identity and relationship of the transferor to the transferee;
- if a trust has been used in the gift, the trust's taxpayer identification number and a brief description of the terms of the trust or a copy of the trust;
- a detailed description of the valuation method or appraisal; and
- a disclosure of a position taken, if contrary to current interpretive regulations.
Legal Definition list
- Adequate Consideration
- Adequate Compensation [Eminent Domain]
- Adequate and Independent Decision
- Adequate and Full Consideration in Money or Money’s Worth
- Adequate Airport [Aeronautics and Space]
- Adequate Disclosure
- Adequate Evidence
- Adequate Information
- Adequate Parental Care
- Adequate Protection [Bankruptcy]
- Adequate Protective Cover
Related Legal Terms
- Accelerated Disclosure
- Adequate Airport [Aeronautics and Space]
- Adequate and Full Consideration in Money or Money’s Worth
- Adequate and Independent Decision
- Adequate Compensation [Eminent Domain]
- Adequate Consideration
- Adequate Evidence
- Adequate Information
- Adequate Parental Care
- Adequate Protection [Bankruptcy]
