CORAA University · Tool
Materiality Calculator
Determine overall materiality, performance materiality, and trivial thresholds per SA 320 benchmarks.
Financial Data
₹125 Cr
10 L5,000 Cr
₹250 Cr
10 L10,000 Cr
₹139 Cr
-100 Cr500 Cr
₹95.0 Cr
10 L5,000 Cr
Entity Type
₹6.9 Cr – ₹13.9 Cr
Overall Materiality
₹3.5 Cr – ₹10.4 Cr
Performance Materiality
₹21 L – ₹69 L
Clearly Trivial Threshold
Recommended Benchmark: Profit Before Tax
Profit before tax is the most commonly used benchmark for profit-making entities as it reflects the performance measure most relevant to users of financial statements. Using 5%–10% of PBT.
Benchmark Comparison
| Benchmark | Base Value | Range % | Materiality Low | Materiality High |
|---|---|---|---|---|
| Revenue | ₹125 Cr | 0.5% – 1.0% | ₹63 L | ₹1.3 Cr |
| Total Assets | ₹250 Cr | 0.5% – 1.0% | ₹1.3 Cr | ₹2.5 Cr |
| Profit Before TaxRecommended | ₹139 Cr | 5.0% – 10.0% | ₹6.9 Cr | ₹13.9 Cr |
| Total Expenses | ₹95.0 Cr | 0.5% – 1.0% | ₹48 L | ₹95 L |
Benchmark Visual Comparison
Revenue ₹63 L – ₹1.3 Cr
Total Assets ₹1.3 Cr – ₹2.5 Cr
Profit Before Tax ★₹6.9 Cr – ₹13.9 Cr
Total Expenses ₹48 L – ₹95 L
SA 320 Note: Per SA 320, materiality is a matter of professional judgement. The auditor should consider the nature of the entity, its ownership structure, how it is financed, and the informational needs of the users of the financial statements when determining the appropriate benchmark and percentage to apply.
Want AI to calculate materiality dynamically?
CORAA recalculates materiality as financials change, flags items above thresholds, and documents judgements automatically.