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Dear Mike below is an excerpt from a past question. My question, how do they arrive at 17.7m.?
Thanks in advance
Materiality
Preliminary materiality will be in the region of $17.7 million. This is the mid-point based on the assessment
of revenue, total assets and profit before tax (see below). If this figure represents a significant change to the
initial assessment, testing levels may also need to be modified.
½%–1% revenue = $12.9m–25.85m
1%–2% total assets = $16.4m–32.8m
5%–10% PBT = $6.2m–12.4mAdd up all those extremes (12.9 + 25.85 + 16.4 + 32.8 + 6.2 + 12.4) and you arrive at 106.55
Divide by 6 (the number of extremes) and you arrive at 17.7583333
That’s where the 17.7 comes from
OK?
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