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Hi,
Just wondering what a suitable material level for assets is. I am working my way through the above question and part B ‘complex property’ to me appears to be immaterial as its 3.5% of groups assets. I have always been told to use 5% as a guide range for assets, but looking at the answer the examiner states the 3.5% is a material %
Thanks,
This is what I have always used as a guide:
Traditional benchmarks include:
½ – 1% of turnover
5 – 10% of profit before tax
1 – 2% of gross assetsSo 3.5% looks like it’s material!
Thank you! One other question 🙂
If an internal intangible asset is recognised on the balance sheet this is in violation of IAS 38. What is the offsetting side to the journal which would derecognise the intangible?
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