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in events after reporting also there is, if it is non adjusting event should be disclose if it is material.. what is exactly this material is? how would we know if that event material or not…????
An item is considered material if its omission or misstatement would influence the economic decisions of users of financial statements.It depends on momentary size,nature and surrounding circumstances surrounding the issue or item in question.It could be considered material due to any one or a combination of these factors.For example,the impairment of a piece of expensive machinery after the balance sheet date may be material to a small enterprise but in and of itself immaterial to a large multinational enterprise.Materiality is a matter of judgement for the preparers of financial statements given the above factors.
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