Materiality Concept I Materiality & Aggregation as per IAS & IFRS скачать в хорошем качестве

Materiality Concept I Materiality & Aggregation as per IAS & IFRS

What is Materiality: Items that have impact on a user's decision are termed  as Material. Example: In accounting, materiality refers to the relative size of an amount. Relatively large amounts are Material, while relatively small amounts are not material (or Immaterial). Determining materiality requires professional judgement. For instance, a BDT 20,000 amount will likely be immaterial for a large corporation with a net income of BDT 90,00,000. However, the same BDT 20,000 amount will be material for a small corporation with a net income of BDT 40,000. General Rule: In general, the thumb rule for the materiality of financial information is stated as: On the Income statement, a variation of more than 5% of before-tax Profit or more than 0.5% of Sales Revenue may be seen as “large enough to matter.” On the Balance sheet, a variation in the entry of more than 0.5% of total Assets or more than 1% of total Equity may be viewed as “large enough to matter.”