June 2015 Q3 Ash Trading Co

This topic has 3 replies, 2 voices, and was last updated 9 years ago by Ken Garrett.

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May 29, 2016 at 5:32 pm #317958
Chloe
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Why would you work out the inventory as a percentage over revenue to work out if material or not?
May 29, 2016 at 7:36 pm #317979
Ken Garrett
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Simple because materiality can be estimated with reference to profits, revenue and total assets. Total assets were not provided here.
May 29, 2016 at 9:06 pm #317991
Chloe
Member
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I see, so if not provided you use what you have been given.
May 30, 2016 at 10:38 am #318107
Ken Garrett
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Correct. Always think WHY? has a particular piece of information been given?
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