Materiality - matter vs misstatement

You could certainly have calculated $25k misstatement which should have been included in OCI has a % of profit - but at only 1.2% you would have concluded that this misstatement is material. The answer is considering the materiality of the possible misstatement in the classification of the entire building - i.e. should £353k be included in the line that is PPE - or separately as investment property. Materiality calculation clearly depends on which misstatement you are considering - if your only calculation is immaterial then perhaps that is a clue that you have missed some other material misstatement.

You are welcome!