Materiality

Dear Sir,
Please help me with this query.

QUESTION
You are the manager responsible for the audit of Albreda Co. The draft consolidated financial statements for the year ended 31 March 20X2 show revenue of $42.2 million (20X1 $41.8 million), profit before taxation of $1.8 million (20X1 $2.2 million) and total assets of $30.7 million (20X1 $23.4 million). In March 20X2, the management board announced plans to cease offering ‘home delivery’ services from the end of the month. These sales amounted to $0.6 million for the year to 31 March 20X2 (20X1
$0.8 million). A provision of $0.2 million has been made at 31 March 20X2 for the compensation of redundant employees (mainly drivers).
Required
Comment on the materiality of these two issues.

ANSWER

Provision
The appropriate indicators of materiality with regard to the provision are total assets and profit, as the provision affects both the statement of financial position (it is a liability) and the statement of profit or loss and other comprehensive income (it is a charge against profit).
$0.2 million is 0.65% of total assets in 20X2 (see Working 2). As an item is generally considered to be material if it is in the region of 1–2% of total assets, the provision is not material to the statement of profit or loss and other comprehensive income.
However, $0.2 million is 11% of profit before tax for 20X2 (see Working 3). An item is considered material to profit before tax if it is in the region of 5%. Therefore, the provision is material to the statement of financial position.

Sir my question is why statement of profit or loss and other comprehensive income is considered as immaterial for total assets portion and statement of financial position is considered as material for profit before tax portion.

the above question is collected from BPP book.

Thanks.