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Investor Presentaiton

CA THE INSTITUTE OF CHARTERED ACCOUNTANTS OF SRI LANKA Highlights... Materiality is an entity-specific aspect of relevance; all information that is material to an understanding of an entity will be relevant to that entity's activities, but not all relevant information will be material. Materiality depends on the nature and magnitude of information, and must be judged in the particular circumstances of the entity. If material information is excluded from the financial statements, this may adversely affect decisions made by the users of the financial statements. At a practical level, those responsible for preparing the financial statements need to assess the likelihood that a change in the content of the financial statements, or how the information is presented, could influence the decisions made by the primary users of those financial statements. primary users of general purpose financial statements, are existing and potential investors, lenders and other creditors who cannot require entities to provide information directly to them and must rely on general purpose financial reports. CAT THE INSTITUTE OF CHARTERED ACCOUNTANTS OF SRI LANKA • The Highlights (contd..) concept of materiality is pervasive to the preparation of the financial statements. If information is material, it is required to be recognised, measured, presented and disclosed, as appropriate, in accordance with IFRS. IFRS requires management to think beyond the specific requirements in IFRS and provide additional information that is relevant to an understanding of the financial statements. This involves judgement about how the information contributes to the overall picture of the entity's financial position, financial performance and cash flows. 26
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