- This topic has 1 reply, 2 voices, and was last updated 7 years ago by
.
- Posts
Hi sir,
1) Regarding trade receivable here i think that the matter is pervasive individually as its 72% of profit but in answer its material and not pervasive?
2) becauae i think it is pervasive, i woud discuss it in materiality and uncertaininty related to going concern para? Well can i?
“Pervasive” is NOT a “degree” of materiality. Ignoring Poodle – just looking at the concept – if $10,000 is a material error in trade receivables (say), $100,000 is also a material error in trade receivables. In both cases we say “except for …. [error in receivables] … the financial statements show a true and fair view”.
“Pervasive” concerns the financial statements as a WHOLE.
If something is not pervasive you will not get credit for what would amount to a digression.
- You must be logged in to reply to this topic.