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Hi sir,
Regrding materiality threshold.
Should we compare each figure for example ( deffered income) to all total assets/revene and profit?
No – materiality of a monetary amount is only meaningfully assessed against a RELEVANT parameter. For example, failure to provide for a liability means that expenses are understated – it makes no sense to measure this against revenue or total assets as it affects only profit – so it should be calculated only as a % of profit to determine if the misstatement is material.
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