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CORAA University · Tool· विद्यालय

Set the materiality that holds up under SA 320.

Determine overall materiality, performance materiality and trivial thresholds, with benchmark recommendations and adjustments for first-year and prior qualifications.

Financial data
Total revenue₹125 Cr
10 L5,000 Cr
Total assets₹250 Cr
10 L10,000 Cr
Profit before tax₹139 Cr
-100 Cr500 Cr
Total expenses₹95.0 Cr
10 L5,000 Cr
Entity type
Overall materiality
₹6.9 Cr – ₹13.9 Cr
Performance materiality
₹3.5 Cr – ₹10.4 Cr
Trivial threshold
₹21 L – ₹69 L
Recommended benchmark: Profit Before Tax
Profit before tax is the most commonly used benchmark for profit-making entities. Using 5%–10% of PBT.
Benchmark comparison
BenchmarkBase valueRange %Mat. lowMat. high
Revenue ₹125 Cr0.5% – 1.0%₹63 L₹1.3 Cr
Total Assets ₹250 Cr0.5% – 1.0%₹1.3 Cr₹2.5 Cr
Profit Before Tax Recommended₹139 Cr5.0% – 10.0%₹6.9 Cr₹13.9 Cr
Total Expenses ₹95.0 Cr0.5% – 1.0%₹48 L₹95 L
Visual comparison
Revenue · ₹63 L – ₹1.3 Cr9%
Total Assets · ₹1.3 Cr – ₹2.5 Cr18%
Profit Before Tax · ₹6.9 Cr – ₹13.9 Cr100%
Total Expenses · ₹48 L – ₹95 L7%
SA 320 note
Per SA 320, materiality is a matter of professional judgement. Consider the nature of the entity, its ownership structure, how it is financed and the informational needs of users when determining the appropriate benchmark and percentage.
Living materiality

Materiality, recalculated - recalculated, documented, defensible.

Coraa recomputes materiality as financials change and flags items above thresholds, automatically.

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