- Find Attorney
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: