Convention of Materiality [June 2023, l Mark]
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Theoretical FrameworkQuestion 4947 of 110
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Detailed Solution & Explanation
Convention of Materiality:
All material i.e. important/ significant items or information should be properly
accounted & disclosed in the accounts & financial statements.
That means immaterial items can be given a convenient accounting treatment.
Ex. : Stationery, Postage, such items are treated as expense in the period of purchase
even though some unconsumed balance may be there.
About This Chapter: Theoretical Framework
Paper
Paper 1: Accounting
Weightage
5-10%
Key Topics
Policies, Standards (Ind AS), Vocabulary
This chapter covers Policies, Standards (Ind AS), Vocabulary and is part of Paper 1: Accounting in the CA Foundation exam.
View Official ICAI SyllabusExam Strategy Tip
This topic carries 5-10% weightage. Focus on understanding core concepts rather than memorizing.
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