The concept of Adequate Disclosure means that "The Company must inform users of any significant/ material facts necessary for proper interpretation of the financial statements including events occurring after the financial statement date" (a) What is "materiality"? In evaluating the "materiality" of an event or transaction, name two (b) How does professional judgment enter into the application of the principle of adequate (e) Is externally reported financial information always precise and accurate? Briefly explain and (d) City Repertory Theatre is a famous professional theatre company in the city. Its mission is 017. The annual revenue of the Company is about $3 aspects that accountants should consider. (6 marks) . disclosure? (7 marks) give one example to illustrate your answer (7 marks) to produce and develop a high quality and innovative repertoire, encompassing classic and contemporary theatre. The Company's year-end date was at 30 June 2017 and the Financial Statement was issued on 29 August 2 million and the total asset is about $2 million in 2017 Using the principle of adequate disclosure, state the items below that may or may not require disclosure with the financial statements. If yes, please identify the nature of disclosure;if please give the reason. 1. The Company purchased a S280 durable pencil-sharpener in March 2017 with the estimated useful life of 3 years for office use. The company did not depreciate its cost but charge to expense when purchase. The Company is being sued by a former artist, Mr. Kris Heung for claiming S0.5 million dollars of compensation, who was injured during the drama performance in 2016. Mr. Heung laimed that the accident was totally due to the negligence of the Company's technical and stage director and the hearing date is fixed on 1 September 2017