materiality concept -AS1

Divya (CA Final student) (272 Points)

24 May 2009  

AS 1 defines 'material item' as the items, the knowledge of which might influence the decision of the users of financial statements. Also:

Any item under which the expenses exceed 1 percent of total revenue of the company or Rs.5000 whichever is higher are shown as a separate and distinct item against appropriate account head in the P&L and are not combined with any other item shown under miscellaneous expenses.

Are there any changes in the above mentioned point with regard to the current A.Y.??