[millish23]

Oh OK thanks. Also the standard says we are not allowed carry an item at higher of it’s recoverable amount, either value in use or fair value less costs to sell. Does this mean that if we revalue an item we need to exclude the costs to sell from the fair value once we revalue it?

So say if we revalue an item from 500,000 to 1000,000 and the cost to sell are 50,000 is the fair value after revaluation in the accounts then 950,000? Thanks

[millish23]

Outstanding sir, thank you for clearing it up.

[millish23]

Think I have the wrong idea about materiality. Does that mean that every error found in every area needs to be added up and if that exceeds the materiality figure we need to ask management to make the corrections?

Are the errors aggregated regardless of that class of transaction they are found in or are they aggregated regardless of where they are found?

I read an example online with an account that was below materiality and the example said the auditor will do nothing because the account was below the materiality figure and there was no danger of material misstatement

Thanks for your reply

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