Page 29 - 33. FR RTP NOV. 22

As regards the assessment of materiality of an item in preparing interim financial statements, paragraph 25
of Ind AS 34, Interim Financial Statements, states that while judgement is always required in assessing
materiality, this Standard bases the recognition and disclosure decision on data for the interim period by itself

for reasons of understandability of the interim figures. Thus, for example, unusual items, changes in accounting
policies or estimates, and errors are recognised and disclosed on the basis of materiality in relation to interim
period data to avoid misleading inferences that might result from non-disclosure. The overriding goal is to
ensure that an interim financial report includes all information that is relevant to understanding an entity‖s
financial position and performance during the interim period.

As per the above, while materiality judgements always involve a degree of subjectivity, the overriding goal is to
ensure that an interim financial report includes all the information that is relevant to an understanding of the
financial position and performance of the entity during the interim period. It is therefore not appropriate to
base quantitative assessments of materiality on projected annual figures when evaluating errors in interim
financial statements.

Accordingly, the management is required to correct the error in the interim financial statements since it is
assessed to be material in relation to interim period data.

33.28