One of the constraints ofconceptual framework for financial reporting, "Informationis material if its omission or misstatement could influence theeconomic decisions of the users taken on the basis of the financial statements."
1. You are required to explain the statement in detail withexamples.
2. In the context of the above statement, would you capitalize thefollowing items in the
accounts of a company? Discuss each item in detail.
a. A box file
b. A computer
c. A small plastic displaystand