Tutorial $-$ Fundamental characteristics $(12$ marks; $24$ minutes$)$MEALBOX is an entity that offers delicious, nutritious, clean and healthy home$-$cookedfrozen meals that they deliver to your door. Mealbox has a $31$ December financial reportingdate and fully adopted the application of International Financial Reporting Standards $($IFRS$).$The trial balance of Mealbox on $31$ December $2023$ includes an amount of R$100250$ underSundry creditors. Upon investigation, you determined that R$75000$ of this amount relatesto an amount that is owed to one of Mealboxs largest clients, InFood caf$,$ in respect of asettlement for damages. InFood caf$$ ordered frozen meals from Mealbox. InFood caf$$served these meals to their clients who then contracted food poisoning. InFood caf$$threatened Mealbox with legal action for reputational damages. To avoid a costly legal battleand any negative publicity, Mealbox agreed to settle the dispute with InFood caf$$ and paydamages of R$75000.$ The settlement was reached through a verbal agreement betweenInFood caf$$ and Mealbox. The amount has not yet been paid to InFood caf$$ as at$31$ December $2023.$The accountant of Mealbox accounted for this amount in the Sundry creditors and Sundryexpenses accounts. He did not want to present it as a separate line$-$item in the financialstatements. He also did not want to include any descriptive information in the notes to thefinancial statements relating to this settlement. He just wants the whole thing to disappearand was worried that some of their other clients might have food safety concerns as a resultof this event, which would be devastating to their business.REQUIRED:Discuss whether the decision by the accountant of Mealbox, to not include any descriptiveinformation in the notes to the financial statements relating to this matter, is in line with thefundamental characteristics of useful financial information as per the Conceptual Frameworkfor Financial Reporting $2018.(12,0)$NOTE: $-$ Discuss only the theory of useful financial information, as well as the applicationthereof, that is relevant to this question.$-$ Include customers of the entity as the primary users of the financial informationin your discussion.$-$ Do not discuss the interrelation between predictive and confirmatory value offinancial information.$-$ Do not discuss substance over form.$-$ Do not discuss prudence.$-$ Do not discuss any enhancing qualitative characteristics.