Home › CA Final › financialreporting › Ind AS 34 — Interim Financial Reporting: Contents, Recognition & Measurement, Estimated ETR, Seasonal Revenues › Which of the following is INCORRECT about MATERI…
Which of the following is INCORRECT about MATERIALITY assessment under Ind AS 34?
AMateriality for interim periods is assessed by reference to the FULL ANNUAL data (not the interim data) so that small interim amounts do not distort disclosure
BUnusual items, changes in accounting policy or estimates, and errors are recognised and disclosed based on materiality relative to interim period data
CMateriality is assessed in relation to interim period financial data
DInterim measurements may rely on estimates to a greater extent than annual measurements
Answer & Solution
Correct answer: A. Materiality for interim periods is assessed by reference to the FULL ANNUAL data (not the interim data) so that small interim amounts do not distort disclosure
Ind AS 34 paragraph 23 explicitly bases interim materiality on INTERIM period data, not annual. This avoids misleading inferences from omitting items that are material to the interim period even if small relative to the full year.
Related questions
An entity's estimate of an amount reported in an interim period changes SIGNIFICANTLY in tCONTRACTUAL volume rebates / discounts that are PROBABLE of being earned by year-end (becaAn entity recognises an inventory write-down to NRV ₹50,000 in Q2; in Q4, NRV recovers andDEPRECIATION AND AMORTISATION for an interim period is computed based on:EMPLOYER PAYROLL TAXES assessed on an annual basis with a per-employee earnings cap shouldMAJOR PLANNED PERIODIC MAINTENANCE or OVERHAUL expected to occur late in the year is, for Year-end BONUSES can be anticipated for interim reporting purposes if and only if:An entity has highly seasonal revenue (peak in December). Under Ind AS 34, how should it r