- This topic has 4 replies, 2 voices, and was last updated 5 years ago by
MikeLittle.
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numera
- Topics: 30
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hi
in most matters to be considered questions, theres always one current and one last years figure of -Profit /Assets/Revenue given.i understand the fact that we calculate this years materiality with the help of those figures.
but what is the main objective of giving us last years amounts as well?
i seemed to have missed the point.thanks.
numera
- Topics: 30
- Replies: 44
- ☆☆
sorry the topic was meant to be “materiality calculation”
i accidentally wrote conclusion.
typo.
MikeLittle
- Topics: 26
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Materiality is not simply a matter of saying, for example, that an item is 8% of a different benchmark
There is also the important element of comparison
If gross profit is 8% … is that good or bad?
Who can tell until you’re told that last year the gross profit was 135
Absolute values are fine, but the real strength of materiality calculations comes with comparison
OK?
numera
- Topics: 30
- Replies: 44
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ok got it thanks.
MikeLittle
- Topics: 26
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You’re welcome
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