Complete the following table — identify which fundamental characteristic and which attribute are indicated in each independent scenario
Scenario
Fundamental Characteristics
Attribute
TNT Inc.'s accountant has verified that all equipment has been depreciated according to the company's depreciation schedule.
S & C Company includes in a note all relevant details relating to the company's equipment — including depreciation method, estimated useful life, historical cost, and accumulated depreciation.
Lindoors Corp discloses plans to dispose of a major operating segment.
TLR Studios discloses information relating to a pending lawsuit that is likely to have an unfavorable outcome.
What will be an ideal response?
Answer:
Scenario
Fundamental Characteristics
Attribute
TNT Inc.'s accountant has verified that all equipment has been depreciated according to the company's depreciation schedule.
Faithful Representation
Free from error
S & C Company includes in a note all relevant details relating to the company's equipment — including depreciation method, estimated useful life, historical cost, and accumulated depreciation.
Faithful Representation
Complete
Lindoors Corp discloses plans to dispose of a major operating segment.
Relevance
Materiality
TLR Studios discloses information relating to a pending lawsuit that is likely to have an unfavorable outcome.
Faithful Representation
Neutral
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