Question
Aegnir Corp., a multimillion dollar company, disclosed in a footnote that its CEO was charged by the SEC for paying a $25,000 bribe to a
Aegnir Corp., a multimillion dollar company, disclosed in a footnote that its CEO was charged by the SEC for paying a $25,000 bribe to a government official in another country. No other details were given because this allegation was made just prior to Aegnirs year end. This allegation, if true, is a clear violation of the Foreign Corrupt Practices Act and a serious federal crime. In addition, it could tarnish Aegnirs much publicized plans for expanding internationally.
Which of the following fundamental qualitative characteristics of accounting information is (are) best represented in this example?
a. Confirmatory value.
b. Materiality.
c. Free from error.
d. Neutrality.
e. Both B and D are best represented.
A brief explanation of the answer would be much appreciated!
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