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I have come across two announcement on ACCA website about the changes in syllabus of P7, one in Feb 2011 and other in October 2011. Feb has aimed for 2011 exams (June and December). I would appreciate if someone could explain how does the October announcement affects with the June 2012 sitting?
Does the announcement not give you a clue as to how it affects the June 2012 exam?
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Hi there,
I’m unsure as to whether this is the right forum to post this, but I need some help from the tutor on the materiality guidelines.
I’m of the understanding that the below applies:
0.5-1% of Revenue
1-2% of Total Assets
5-10% Profit Before Tax,However, if the amounts are in excess of these, I assume that it is still material – such as 12% of Profit Before Tax???
Wow! Certainly material!
What the percentages are telling you is that at least 2% of assets is always material, even in a well ordered company. But materiality may be as low as just 1% of assets in a company which carries a lot of audit risk – so eg where controls system is weak ( or unauditable ) or where there are a lot of, or just some major, inherent risks
Hi,
I would like to confirm whether 2% of asset is consider material because in the question of 2008 june question 3, where it’s about related party transactions. The receivable balance is $25,000, total assets is $12 million, which means it’s material because it represents 2% of total assets, isn’t it? But why did the answer said that it is not material? Don’t really understand 🙁
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