Materiality relates to regulatory aspects of accounting, since omissions or misstatements of items are material if they could, individually or in the aggregate, influence the economic decisions made by users on the basis of the financial statements.
Materiality depends on the size and nature of the omission or misstatement, judged by reference to the particular circumstances in which it occurred. The determining factor could be the magnitude of the item, its nature or a combination of both.
Offsetting in the statement of comprehensive income or in the statement of financial position or in the separate income statement (when presented) limits the ability of users to understand the transactions and other events and conditions that have occurred and to assess the entity's future cash flows, except when offsetting is a reflection of the substance of the transaction or event.
The net measurement of assets subject to impairment losses-for example, impairment losses on inventories due to obsolescence and doubtful accounts receivable-is not an offset.
When an entity changes the end of the reporting period and presents financial statements for an accounting period longer or shorter than one year, it shall disclose for the period covered by the financial statements: (a) the reason for using a shorter or longer period; and (b) the fact that the amounts presented in the financial statements are not fully comparable.