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One of the specific circumstances when subsidiaries must be excluded from consolidation is MATERIALITY… what does materiality mean here ? can u give an example??
what do the terms ‘rebates’ and ‘subsidies’ mean?? they are used in IAS2 definition of cost…
Materiality in this context means pretty much the same as materiality in any other context.
An item is material if its inclusion or omission would likely affect the view of the financial statements in the mind of an informed reader!
Rebates and subsidies are the equivalent of discounts
these terms are used separately in the book…. can u give some practical example of rebates and subsidies??
Well, according to my dictionary, the meanings are as follows:
rebate:
#1 ( noun ) a refund of a fraction of the amount payable; discount#2 ( verb ) to deduct ( a part ) of a payment from ( the total )
whereas a subsidy ( according to the same dictionary ) is:
#1 ( noun ) a financial aid supplied by a government, as to industry, for public welfare, the balance of payments etc
#2 ( historic ) a financial grant made originally for special purposes by Parliament to the Crown
#3 any monetary aid, grant, or contribution
Does that help?
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