Explain Why It Is Necessary to Allocate the Preliminary Judgement

question 29

Essay

Explain why it is necessary to allocate the preliminary judgement about materiality to individual accounts (segments)in the financial statements.Also explain why allocating to balance sheet accounts is more common than allocating to income statement accounts.

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Definitions:

Ethno-Cultural Group

A community of people who share common cultural and ethnic identity, including language, traditions, customs, and often a shared history.

Ascribed Status

A social position a person receives at birth or takes on involuntarily later in life, such as race, gender, and family background.

Socially Disadvantaged

Describes individuals or groups who experience inequality and reduced opportunities due to economic, social, or cultural barriers.

Target Group

identifies the specific segment of the population at which a particular service, product, or message is aimed.