What are the rules for materiality limit

Reference no: EM13259067

Differentiation betweenmateriality in size and materiality in nature of an asset inaccounting.How we can distinguish between them.for example if thereis given that the carrying amount of machinery is 500000$ andincluded there in is a particular machine "A" with a carryingamount of 450000$.

If the company's materiality limit is 300000$ then whether themachine "A" to be separately disclosed from the other materialbased on its material size or not?And what if,in the case of"nature"?

What are the rules for materiality limit?If the amount of anasset exceeds or declines over materiality limit?

Reference no: EM13259067

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