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.
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