Related MattersRelated Matters

Related Matters

• The potential effect on the financial report of significant risks, exposures and uncertainties, such as pending litigation, that are disclosed in the financial report.
• The extent to which the financial report is affected by significant transactions that are outside the normal course of business for the entity, or that otherwise appear to be unusual. This communication may highlight:
  • The non‑recurring amounts recognised during the period.
  • The extent to which such transactions are separately disclosed in the financial report.
  • Whether such transactions appear to have been designed to achieve a particular accounting or tax treatment, or a particular legal or regulatory objective.
  • Whether the form of such transactions appears overly complex or where extensive advice regarding the structuring of the transaction has been taken.
  • Where management is placing more emphasis on the need for a particular accounting treatment than on the underlying economics of the transaction.
• The factors affecting asset and liability carrying values, including the entity’s basis for determining useful lives assigned to tangible and intangible assets. The communication may explain how factors affecting carrying values were selected and how alternative selections would have affected the financial report.
• The selective correction of misstatements, for example, correcting misstatements with the effect of increasing reported earnings, but not those that have the effect of decreasing reported earnings.