1. Great Fitness Club (GFC) reported membership fee of $2,145,800 in the financial statements for 20X1. Included in this figure was $300 from sale of an obsolete treadmill that had been in a storage for the last three years. GFC disclosed this in their notes to the financial statements

Task:

Explain how this scenario illustrates a fundamental qualitative characteristic of financial information that is present and why it is present.