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Could I get a list of the items that are material by nature(relevant to p7)? I know about related party and director emluments but a list would be better. Thank you.
If you want a list I suggest you add to your list whenever you see another example in an answer. You will not be examined on rote learning – every exam question is unique and it it important that you can identify whether something is material by nature in a given scenario.
If you understand why the examples you have given are material by nature you should appreciate that, for example, that a listed company’s omission of the disclosure of earnings per share would be another example.
1) Could u plz explain the reason in more details. I am not sure about it
2) Regarding directors
I think any transaction related to the directors is material by nature because they are in a position which can easily influence the financial statement.3) Regarding omission of discloure of eps what is the reason?
What does 1) refer to?
2 – NO – it’s because if something is required to be disclosed (e.g. in accordance with company legislation) it has to be disclosed accurately.
3 – A listed entity must disclose basic and diluted EPS – the monetary amounts of these will be very small (“immaterial”) but material “by nature” because the financial statements cannot show a true and fair view/be properly prepared in accordance with IFRS, if IFRS requirements have been disregarded.
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