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The Materiality Convention states:
APhysical assets are material; intangibles are not
BAll transactions above ₹100 must be disclosed
COnly material (important + relevant) information should be supplied to users
DMateriality is the same for all sizes of business
Answer & Solution
Correct answer: C. Only material (important + relevant) information should be supplied to users
1. Per OCR: "only material fact i.e., important and relevant information should be supplied to the users of accounting information."
2. Materiality depends on nature + amount.
3. Influences disclosure threshold + aggregation.
_Source: ICMAI BoS CMA Foundation Paper 2 (FFCA) — Paper2_07042026.pdf, Module 1 §1.2.2.2 (page 18)_